Describe how the following changes affect the aggregate demand (AD) curve. Your answer must state clearly which component of the aggregate demand is affected and how AD curve eventually shifts. (i) Fi

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Describe how the following changes affect the aggregate demand (AD) curve. Your answer must state clearly which component of the aggregate demand is affected and how AD curve eventually shifts.

(i) Firms are pessimistic about the future sales.

(ii) The government has announced a reduction in personal taxes.

(iii) The currency of a country depreciates against major trading partners.

(iv) The central bank cuts interest rates to boost market sentiment.

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