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Please answer the questions in a Word document, maximum 2 pages (include answer only). APA style is preferred.
1) What is quantity theory of money? Please elaborate in details.
2) What are the factors that shift aggregate demand (AD)?
Slide 52 
Positive   Shocks (Increase AD) (=   Higher Growth Rate of Spending)
A   faster money growth rate
Increased   wealth
Lower   taxes
Greater   growth of government spending
Increased   export growth
Decreased   import growth
Negative   Shocks (Decrease AD) (=   Lower Growth Rate of  Spending)
A   slower money growth rate
Reduced   wealth
Higher   taxes
Lower   growth of government spending
Decreased   export growth
Increased   import growth

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