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Determine how each of the following monetary or fiscal policy would shift the aggregate demand curve. Illustrate and explain the following effect. a. As the economy is in the state of recession, the government decided to increase government spen

1.     Determine how each of the following monetary or fiscal policy would shift the aggregate demand curve. Illustrate and explain the following effect. 

 

a.      As the economy is in the state of recession, the government decided to increase government spending.


 

b.     Central bank decided to fight an inflationary economy by reducing money supply.


 

c.      Under full employment economy, the government has decided to increase taxes on income earned by people.


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