When the labor market in the United Scares is strong, unemployment is low, and incomes are rising, we expect to see a) no change in the demand AD curve b) a downward movement along the AD curve c) an upward movement along the AD curve d) a decrease in the AD curve e) an increase in the AD curve

Suppose the government lowers income taxes for households. How does this affect the aggregate demand (AD) curve? a) By increasing disposable income, consumption spending rises and AD shifts to the right. b) By increasing disposable income, investment spending rises and AD

shifts to the right. c) By decreasing disposable income, consumption spending rises and AD shifts to the right. d) By decreasing disposable income, consumption spending falls and AD shifts to the right. e) By increasing disposable income, consumption spending rises and AD shifts to the left.