In which direction would each of the following changes in conditions cause the aggregate demand curve to shift? Explain your answers. Consumers expect an economic downturn. A new U.S. President is elected, and the profit expectations of business executives rise. The federal government increased spending for highways, bridges, and other infrastructure. The United States increases exports of wheat and other crops to Russia, Ukraine, and other former Soviet republics.

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batolisis batolisis · Answer 1 · 2020-05-13T03:22:20+02:00

Answer:

consumers expect an economic downturn : demand curve shifts to the left
A new U.S president is elected, and the profit expectations of business executives rise : demand curve shifts to the right
The federal government increased spending for highways,bridges and other infrastructure : demand curve shifts to the right
The united states increases exports of wheat and other crops to Russia,Ukraine and other former soviet republics : demand curve shifts to the right

Explanation:

when there is an expected economic downturn the consumers would be pessimistic about buying hence the demand curve will be dropped ( shifted to the left )
when a new president is elected and profits are expected to rise the consumers will optimistic about the profits and this will affect the demand curve positively( shift to the right )
increase in infrastructure spending is a sign of government expansion policy and this will affect the demand curve positively as well.( shift to the right )
increase in exports will bring about increased foreign reserves and also affect the real GDP of the country and all this will have a positive effect on the demand curve ( shift to the right )