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 mentioned in the article will increase spending by the government and companies, which will increase the aggregate demand for goods and services. This will shift the aggregate demand curve to the right. Therefore, option C is correct. Options A and B are incorrect because the policies are aimed at increasing spending and not reducing it. Option D is incorrect because one of the choices is correct.

The World View Article in the Text Titled "China Sets