Answer to Question #14199 in Macroeconomics for marchelle

Question #14199
What effects would each of the following have on aggregate demand or aggregate supply? A) a widespread fera of depression on the part of the consumer. B) an N$ increase in the excise tax on a pack of cigarettes. C) a reduction in the interest rate at each price level. D) the expectation of rapid inflation.
Expert's answer
A)& AD curve left, output down and price level down
B) AD curve left,Price up
C) AS increase, Price increase
D) AD curve right, price level up

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