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Q: Does an increase in aggregate demand cause an increase in aggregate expenditures?
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Because tax cuts will likely affect both aggregate demand and aggregate supply does it matter which is affected more?

Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.


What would cause an increase in aggregate demand in the short run?

if decrease a price or if the expectation of raising a price


What the cause of demand pull inflation?

Consumers want more and more goods and services. Stronger consumer demand for goods with a limited or fixed supply. A price level increase due to an increase in aggregate demand.


Does increasing taxes decrease aggregate demand?

cause of incresing and decresing the Determinants of aggregate?


A decrease in government spending will cause a?

decrease in aggregate demand


How would an increase in total expenditures affects the national's economy?

An increase in total expenditures affect the nation's economy would cause an expansion.


Cause the aggregate demand curve to shift outward?

Real shocks will determine the direction of the long-run aggregate demand curve. A real shock is an event or certain factors that cause more or less production. A war, for instance will halt factories from producing goods and will cause the aggregate demand curve to shift left. Higher production will lead to an outward shift to the right.


What would cause the aggregate demand curve to shift to the right?

The aggregate demand curve will shift to the right as the economy expands. When that happens, the quantity of output demanded for a given price level rises.


An increase in demand will cause the equilibrium price and quantity to rise?

An increase in demand will cause the equilibrium price to fall and equilibrium quantity to rise.


Increased consumer spending will usually cause?

In the short run increased consumer spending causes an increase in Aggregate Demand and therefore an increase in both Real Gross Domestic Product and Price Levels. Also this generally means; inflation, decrease in unemployment, and growth, these can vary however, depending on where on the Aggregate Supply curve the AD curve is.


What is the cause of a demand pull inflation?

Consumers want more and more goods and services. Stronger consumer demand for goods with a limited or fixed supply. A price level increase due to an increase in aggregate demand.


Which is not a cause for the increase in leisure activities?

The current economic demand is not a cause for the increase in the leisure activities.