In the following table, determine how each event affects the position of the aggregate demand curve. Direction of AD Curve Shift Event Left Right No Shift A decrease in consumer confidence (suggests people believe a contraction/recession coming) A decrease in individual income tax rates An increase in the value/price of housing
In the following table, determine how each event affects the position of the aggregate demand curve. Direction of AD Curve Shift Event Left Right No Shift A decrease in consumer confidence (suggests people believe a contraction/recession coming) A decrease in individual income tax rates An increase in the value/price of housing
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In the following table, determine how each event affects the position of the aggregate
|
Direction of AD Curve Shift |
||
Event |
Left |
Right |
No Shift |
A decrease in consumer confidence (suggests people believe a contraction/recession coming) |
|
|
|
A decrease in individual income tax rates |
|
|
|
An increase in the value/ |
|
|
|
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