Macroeconomics 15th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 3

Explain how and why each of the following factors would influence current aggregate demand in the United States:
a. increased fear of recession
b. increased fear of inflation
c. rapid growth of real income in Canada and Western Europe
d. a reduction in the real interest rate
e. a higher price level (Be careful.)