Changing consumer taste and preferences, lawsuits, and competitive pressures adversely affect McDonald's sales

Which set of changes will definitely shift the aggregate demand (AD) curve to the right?

A) Business taxes decline and foreign real national income rises. B) Businesses become pessimistic about future sales and the U.S. dollar depreciates. C) Wealth increases and individuals expect higher (future) incomes. D) a and b E) a and c

Import tariff rates are typically higher on final consumption goods than on intermediate goods and raw materials sold to manufacturing firms. This tendency is known as

A. the terms of trade effect. B. the tariff escalation pattern. C. the sudden-damage effect. D. the spillover effect.