Assignment:
Explain in detail how and why would the aggregate demand curve shift in response to following changes:
a. An increase in personal taxes
b. An increase in expected profits and business confidence
c. A decrease in level of foreign GDP or real income
d. A decrease in nominal money supply by the Federal Reserve
e. Due to a war a law passes in Congress allowing drafting of all males and females between ages of 18 and 35.
f. A free immigration day is declared allowing 10 million immigrants passing the border within that day. All of them get the jobs of 10 million Americans in farming, leaving 10 million unemployed Americans.