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14 July, 13:34

Which government policy will shift the aggregate demand curve to the right?

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  1. 14 July, 16:17
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    When government spending decreases, regardless of tax policy, aggregate demand decrease, thus shifting to the left. The fourth term that will lead to a shift in the aggregate demand curve is NX (e). This term means that net exports, defined as exports less imports, is a function of the real exchange rate.
  2. 14 July, 17:29
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    A decrease in taxes
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