Classify the events according to their impact on aggregate demand (AD). A dramatic decline in the average price of houses will decrease AD. Increased concern that a recession is looming will decrease AD. An announcement by the central bank to maintain its existing monetary policy will not change AD. A reduction in government spending will A dramatic improvement in the stock market, causing investors' wealth to rise, will A recession occurring in a trading partner's economy will An increase in income tax rates on individuals earning more than $450,000 per year will decrease AD increase AD. decrease AD not change AD.