ECON 102 – Sort the items according to their impact on aggregating demand(AD)

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January 3rd, 2018

Sort the items according to their impact on aggregating demand(AD): Increase AD, Decrease AD, Will not change AD1). A dramatic improvement in the stock markets, causing investors wealth to rise, 2). a dramatic decline in the average price of houses. 3). increased concern that a recession is looming 4). an increase in income tax rates on individual earning more than 450,000 per year. 5). A recession occurring in a trading partners economy 6). an announcement by the central bank to maintain its existing monetary policy.

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