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Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
if decrease a price or if the expectation of raising a price
cause of incresing and decresing the Determinants of aggregate?
decrease in aggregate demand
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.
Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
if decrease a price or if the expectation of raising a price
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.
cause of incresing and decresing the Determinants of aggregate?
decrease in aggregate demand
An increase in total expenditures affect the nation's economy would cause an expansion.
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.
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 to fall and equilibrium quantity to rise.
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.
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.
The current economic demand is not a cause for the increase in the leisure activities.