Explain effect on real GDP and the price level in economy

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Reference no: EM133219428

Question - Using aggregate demand (AD & AS) analysis, explain the effect of the following economic conditions. For each condition, ensure you:

1. Identify the AD component

2. Show and explain the effect on real GDP and the price level in the economy.

Each condition is independent:

1. The prospect of new improved technology increases the outlook for business.

2. An increase in the level of personal income tax paid by households.

3. It was proposed in the last budget to decrease Government spending on infrastructure.

4. Australia's exchange rate depreciates for a significant amount of time.

Reference no: EM133219428

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