Which of the following effects helps to explain the slope of the aggregate-demand curve?
a. the wealth effect
b. the interest-rate effect
c. the exchange-rate effect
d. All of the above are correct.
Tax cuts shift aggregate demand
a. left as do increases in government spending.
b. right as do increases in government spending.
c. left while increases in government spending shift aggregate demand right.
d. right while increases in government spending shift aggregate demand left.