Factors shifting the aggregate demand curve.
On the graph below, use the line drawing tool show the effect of increased inverter pessimism about the future profitability of the economy. Label your line AD1
Illustrate which of the following would not have the same effect on AD as you showed above?
1.decreased demand for U.S exports
2.an increase in the price level.
3.an increase in income tax
4.A decrease in government spending
5.All of the above factors would cause a decrease in AD.