Rightward shift of the aggregate demand curve

Reference no: EM13695240

If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?

a) An upward shift of the aggregate expenditure line (Keynesian AD), a rightward shift in the money demand curve, and a rightward shift of the aggregate demand curve (the AS/AD)

b) A downward shift of the aggregate expenditure line, a leftward shift in the money demand curve, and a leftward shift of the aggregate demand curve

c) An upward shift of the aggregate expenditure line, a leftward shift in the money demand curve, and a rightward shift of the aggregate demand curve

d) A downward shift of the aggregate expenditure line, a rightward shift in the money demand curve, and a rightward shift of the aggregate demand curve

Reference no: EM13695240

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