The composition of M2 as of December 2010 includes saving deposits at savings banks and credit unions

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium) shifts to the left? a. The equilibrium real GDP will decrease

b. The equilibrium price level in the economy will increase. c. The aggregate supply curve will shift rightward. d. The aggregate supply curve will shift leftward. e. The economy will experience an expansion.

The tax cuts of 2008 and 2009 reduced the disposable income of U.S. consumers

a. True b. False Indicate whether the statement is true or false