The following list contains items that are related to aggregate demand and/or aggregate supply.
1) Government Spending
2) Consumer Expectations
3) Degree of Excess capacity
4) Personal Income Tax Rates
5) Productivity
6) National Income Abroad
7) Business Taxes
8) Domestic Resource Availability
9) Price of Imported Products
10) Profit Expectations on Investments
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Refer to the above list. Changes in which combination of factors best explain why the aggregate supply curve would shift?
A) 1 and 2
B) 2 and 10
C) 3 and 6
D) 7 and 8
Correct Answer:
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