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What effects would each of the following have on AD and why ?
What effects would each of the following have on AD and why? You may use diagrams to aid your explanation.
a. A widespread fear by consumers of an impending economic depression
b. A new national tax on producers based on the value added between input costs and revenue received
c. A reduction in the real interest rate at each price level
d. A major increase in spending for health care by the Federal government
e. The general expectation of rapid inflation in the near future