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Social Science3. Briefly explain why the following would cause the Aggregate Demand curve to shift to the right(an increase), or to the left(a decrease): expectations that the economy will perform very well in the near future
3. Briefly explain why the following would cause the Aggregate Demand curve to shift to the right(an increase), or to the left(a decrease):
expectations that the economy will perform very well in the near future
Expert Answer
Aggregate demand = C + I + G + (X-M), C= consumption, I= Investment, G= Government spending, (X-M) = Net exports
As consumers expects the economy to perform very well in the near future, it...
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