Macmillan Learning
For each of the scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.
The United States government decides to increase the
federal tax rate by 4% for all earners.
The newest release of the Consumer Confidence Index
shows a steady increase in consumer confidence about
the economy.
A manufacturing boom during the late 1990s has created
an oversupply of tractors, a necessary implement in
agricultural production.
The Federal Reserve, the agency charged with regulating
banking and monetary policy in the United States,
decides to increase the amount of money available in the
economy.
