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Why doesn't an increase in aggregate demand translate directly into an increase in real GDP?

Why doesn't an increase in aggregate demand translate directly into an increase in real GDP


An increase in interest rates affects aggregate demand by?

An increase in interest rates decreases the aggregate demand shifting the curve to the left.


What will happen if Aggregate demand increases and aggregate supply decreases?

An increase in aggregate demand and a decrease in aggregate supply will result in a shortage: there will be more goods and services demanded than that which is being produced.


What will happen if Aggregate demand increases and aggregate supply increases?

An increase in aggregate demand and a decrease in aggregate supply will result in a shortage: there will be more goods and services demanded than that which is being produced.


An increase in taxes shifts the aggregate demand curve to the?

Left


What happens with a decrease in aggregate demand?

Aggreagate demand will increase.


How to improve the workability of concrete?

To improve the workability of concrete, issue to be concerned of as below: - increase water/cement ratio - increase size of aggregate - use well-rounded and smooth aggregate instead of irregular shape - increase the mixing time - increase the mixing temperature - use non-porous and saturated aggregate - with addition of air-entraining mixtures


What is the relationship between inflation and ocr?

As the OCR increases it is highly likely that banks will increase their retail interest rates. As they do this borrowing will become relatively more expensive so there will be more incentive to save. So consumption a component of Aggregate demand will decrease causing aggregate demand to decrease which will than decrease Demand pull inflation


What will increased consumer spending?

Consumer spending is called consumption, which is a component of Aggregate Demand in our economy. In monetary policy, the Federal Reserve can buy treasuries, lower the reserve requirement, and lower the discount rate which will increase consumption. In fiscal policy, the government can cut taxes to increase consumer spending.


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 is demand push inflation?

Demand-pull is caused by an increase in aggregate demand.


How does increase in value of pounds affects aggregate demand?

how does increase in value of pounds affects sterling affect american businesses?