Answer to Question #338162 in Macroeconomics for Yaya

Question

Which of the following events should occur for the AD curve to shift to the right?

a. 

The minister of finance reduces the tax rate.

a. The minister of finance reduces the tax rate.

b. 

The future price level is expected to fall.

b. The future price level is expected to fall.

c. 

The increase in general prices due to increases in the price of petrol.

c. The increase in general prices due to increases in the price of petrol.

d. 

The future interest rate is expected to fall.

Answer 1

a. The minister of finance reduces the tax rate.