In an article regarding Bangladesh's economy, the author suggests that the government ..."[g]ive double tax breaks on investment dollars. Give tax break to R&D [research and development]. Give tax break on donations to educational institutions." www.groundreport.com, March 24, 2008
As a result of enacting the policies, the AE curve will shift ________ and the AD curve will shift ________.

Question

Quizplus · Accepted Answer

The AE (Aggregate Expenditure) curve will shift upward due to increased investment from tax breaks, and the AD (Aggregate Demand) curve will shift rightward as a result of increased spending in the economy, including on R&D and education.

In an Article Regarding Bangladesh's Economy, the Author Suggests That