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Suppose that government spending is raised at the same time

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Reference no: EM13321334

1.If exports fall while imports rise, what happens to the aggregate demand curve?

2. If government expenditure goes down while taxes are raised to balance the budget, what happens to the aggregate demand curve?

3.Suppose that government spending is raised at the same time that the money supply is lowered. What will happen to the position of the aggregate demand curve?

4. Why does the aggregate demand curve shift when animal spirits change?

5.If the dollar increases in value relative to foreign currencies so that foreign goods become cheaper in Canada, what will happen to the position of the short-run aggregate supply curve? The aggregate demand curve?

Reference no: EM13321334

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