Question

Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the amount that taxpayers transfer to the government Mexico trades with the United States. When the United States experiences negative economic growth, Mexico's aggregate demand O A. increases because its imports from the United States decrease OB. decreases because its exports to the United States decrease. Mexico's AD curve shifts leftward OC. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. is unchanged, but aggregate demand decreases in the United States O E. decreases and the quantity of real GDP demanded increases When the Mexican government sets new environmental standards that require factories to upgrade their production facilities, investment in Mexico increases and Mexico's aggregate demand O A. is unchanged, but the price level rises and quantity of real GDP demanded decreases OB. increases. The AD curve shifts rightward. Click to select your answer. ?

Answer 1

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