Match the items according to their impact on aggregate demand (AD).

a. Increase AD
b. Decrease AD
c. will not change AD

1. A dramatic decline in the average price of houses.
2. An announcement by the central bank to maintain its existing monetary policy.
3. An increase in income tax, rates on individuals earning more than $450, 000 per year.
4. A dramatic improvement in the stock market, causing investors' wealth to rise.
5. A recession occurring in a trading partner's economy.

Question

06-12-2021
Business

Answered

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Match the items according to their impact on aggregate demand (AD).

a. Increase AD
b. Decrease AD
c. will not change AD

1. A dramatic decline in the average price of houses.
2. An announcement by the central bank to maintain its existing monetary policy.
3. An increase in income tax, rates on individuals earning more than $450, 000 per year.
4. A dramatic improvement in the stock market, causing investors' wealth to rise.
5. A recession occurring in a trading partner's economy.

Sagot :

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