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1 October, 23:19

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

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  1. 1 October, 23:22
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    A decrease in taxes
  2. 1 October, 23:46
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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.
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