Classify the events according to their impact on aggregate demand (AD). Increases AD Decreases AD Will not change AD increased concern that a recession is looming an announcement by the central bank to maintain its existing monetary policy a dramatic improvement in the sÁCck market, causing investors' wealth to rise a reduction in government spending a dramatic decline in the average price of houses an increase in income tax rates on individuals carning more than $450,000 per year a recession occurring in a trading partner's econony
Classify the events according to their impact on aggregate demand (AD). Increases AD Decreases AD Will not change AD increased concern that a recession is looming an announcement by the central bank to maintain its existing monetary policy a dramatic improvement in the sÁCck market, causing investors' wealth to rise a reduction in government spending a dramatic decline in the average price of houses an increase in income tax rates on individuals carning more than $450,000 per year a recession occurring in a trading partner's econony
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Classify the events according to their impact on aggregate demand (AD).
Increases AD
Decreases AD
Will not change AD
increased concern that a recession is looming
an announcement by the central bank to
maintain its existing monetary policy
a dramatic improvement in the sÁCck market,
causing investors' wealth to rise
a reduction in government spending
a dramatic decline in the average price
of houses
an increase in income tax rates on individuals
carning more than $450,000 per year
a recession occurring in a trading
partner's econony
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