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The AD curve will shift to the right: because of the wealth and interest rate effects. if the government increases taxes paid by households. if household wealth increases. if the aggregate price level increases.

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Explanation:

The aggregate demand curve, or AD curve, shifts to the right as the components of aggregate demand—consumption spending, investment spending, government spending, and spending on exports minus imports—rise. The AD curve will shift back to the left as these components fall.

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