The World View article in the text titled "China Sets Big Stimulus Plan in Bid to Jump-Start Growth" states that China's plan includes spending in housing,infrastructure,and agriculture,as well as a tax deduction for capital spending by companies.These policies will cause the aggregate

Question

Quizplus · Accepted Answer

The policies of increased spending in housing, infrastructure, and agriculture, as well as a tax deduction for capital spending by companies, will likely lead to an increase in aggregate demand as consumers and firms have more money to spend. As a result, the demand curve will shift to the right.

The World View Article in the Text Titled "China Sets