Worksheet 17.2: Aggregate Demand Determine the effect on aggregate demand of each of the following events. Explain whether it represents a change in quantity demanded represented by a movement along the curve (up or down) or a change in demand represented by a shift of the curve (left or right). (Remember, explain means how and why.) Then, in a correctly labeled graph, show how each of the following will affect the AD curve. 1. Business owners are less optimistic about the health of the economy. 2. The government decreases welfare and veteran's benefits. 3. The Federal Reserve increases interest rates. 4. A rising price level decreases the value of money held for purchases. 5. The government lowers personal income taxes. 6. Consumers expect the job market to be much stronger in the next few months