Jumpstarting the economy


Rank which of the following five changes are preventing the aggregate demand curve from shifting outward and jump-starting the economy (list 1 as the most important and 5 as the least). Please explain why you ordered the ranking as you did.

1. Changes in income

2. Changes in expectations (consumer confidence)

3. Changes in wealth

4. Changes in credit conditions

5. Changes in tax policies

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Microeconomics: Jumpstarting the economy
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