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Describing the changes in the aggregate demand curve, equilibrium output, and the price level for the given changes.

Elucidate what happens to the position of the country's aggregate demand curve, the short-run level of equilibrium output, and the country's price level if:

a) The Federal Reserve sharply increases interest rates.

b) Congress enacts an income-tax hike.

c) The U.S. dollar appreciates strongly against the yen and the euro.

d) Consumer confidence increases.

e) stock prices decline 40 percent

f) development of new software necessitates purchases of new computers

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921653

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