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Explain how the aggregate expenditure function shifts in response to the changes in each of the following variables:

You must provide a full explanation including why the shifts will occur.

1- The real interest rate increases
2-Consumer confidence decreases
3-Higher taxes imposed on corporate profits
4-The economies in the rest of the world go into recession.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9162138

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