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If People's Expectations About Future Income Improve So They Think

Question 148

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If people's expectations about future income improve so they think their future income will be higher than previously believed,then the AD curve


A) and the AS curve will both shift leftward because people will increase their saving.
B) will not shift,but potential GDP will increase.
C) will not change until income actually rises.
D) will shift rightward because people will increase spending now.
E) will shift leftward because people will spend less now.

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