Business, 22.04.2021 19:20 joseroblesrivera123

Determine the effect on the United States' aggregate demand for each of the scenarios described below. a. European countries experience an economic expansion and Europeans experience an increase in income. In the U. S., this causes: multiple choice 1 a decrease in aggregate demand, shifting the aggregate demand curve to the left. an increase in aggregate demand, shifting the aggregate demand curve to the right. a movement along the aggregate demand curve to the right, indicating an increase in the quantity of real GDP demanded. a movement along the aggregate demand curve to the left, indicating a decrease in the quantity of real GDP demanded. b. The U. S. government decides to decrease the amount it spends on the military. In the U. S., this causes: multiple choice 2 a movement along the aggregate demand curve to the right, indicating an increase in the quantity of real GDP demanded. an increase in aggregate demand, shifting the aggregate demand curve to the right. a movement along the aggregate demand curve to the left, indicating a decrease in the quantity of real GDP demanded. a decrease in aggregate demand, shifting the aggregate demand curve to the left.

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