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An increase in aggregate demand is not always desirable, as it can lead to inflation if the economy is already operating at or near full capacity. While higher demand can stimulate economic growth and reduce unemployment in the short term, it may also result in rising prices and potential overheating of the economy. Additionally, if the increase in demand is driven by unsustainable factors, such as excessive credit or government spending, it could lead to long-term economic instability. Thus, the effects of increased aggregate demand depend on the economic context and underlying conditions.
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Should demand side policies always be used rather than supply side policies when a government intervenes in an economy?
If the problem in the economy is due to a lack of demand than demand-side policies would be required. If the economy is experiencing a recession, for example, then demand side policies might be appropriate. If the economy is at or near full employment then the focus might be more on increasing aggregate supply.
In the keynesian model of aggregate expenditure real GDP is determined by what?
The aggregate expenditure model relates aggregate expenditures, which is the sum of planned level of consumption + investment + government purchases + net exports at a given price level, to the level of GDP. The key word here is planned. GDP is the same as aggregate expenditures(AE) except for one difference. People, firms and governments don't always spend what they had planned. So AE differs from GDP in that it deals exclusively with amounts firms intend to invest, and not necessarily taking into account amounts that will actually be invested as in GDP Where GDP is defined as C + I + G + NX and I = Ip + Iu (planned + unplanned investment), Aggregate Expenditures is defined as C + Ip + G + NX. AE (Aggregate Expenditure) is used in conjunction with GDP in the Aggregate Expenditures Model to predict future GDP direction. In this model, when AE = GDP then the economy is in equilibrium. According to this model an economy will move towards its equilibrium causing changes in the GDP.
Is economic growth always desirable?
Yes but not always but mostly yes but sometimes no however it is normally yes but could be no yes and no
Which of these factors almost always has a positive effect on an economy?
technology
What trade that has always been important to the European economy?
fishing
Should demand side policies always be used rather than supply side policies when a government intervenes in an economy?
If the problem in the economy is due to a lack of demand than demand-side policies would be required. If the economy is experiencing a recession, for example, then demand side policies might be appropriate. If the economy is at or near full employment then the focus might be more on increasing aggregate supply.
How has the fuel economy changed from then until now?
Not sure when then was, but fuel economy is always improving.Not sure when then was, but fuel economy is always improving.
Will unemployment increase or decrease?
Inflation is always increasing. The US is seeing very little inflation because the way the economy works, but nevertheless prices do rise (gas, milk, etc.). But these are always fluctuating anyway.
In the keynesian model of aggregate expenditure real GDP is determined by what?
The aggregate expenditure model relates aggregate expenditures, which is the sum of planned level of consumption + investment + government purchases + net exports at a given price level, to the level of GDP. The key word here is planned. GDP is the same as aggregate expenditures(AE) except for one difference. People, firms and governments don't always spend what they had planned. So AE differs from GDP in that it deals exclusively with amounts firms intend to invest, and not necessarily taking into account amounts that will actually be invested as in GDP Where GDP is defined as C + I + G + NX and I = Ip + Iu (planned + unplanned investment), Aggregate Expenditures is defined as C + Ip + G + NX. AE (Aggregate Expenditure) is used in conjunction with GDP in the Aggregate Expenditures Model to predict future GDP direction. In this model, when AE = GDP then the economy is in equilibrium. According to this model an economy will move towards its equilibrium causing changes in the GDP.
Are all changes desirable?
Are all changes desirable? Clearly not. Example: "lets change the notion of educating our children, to never educating them" All changes are not desirable. Then ask: Is any change always desirable? No. Should the prospect of change be desirable? Sometimes. The answer depends on perception, intention and outcome. The only truth with almost near certainty is to state the following: Change can be desirable.
Equilibrium is always associated with a desirable state of affairs true or false?
true
What objective is always desirable in human movement?
Efficiency is always a desirable objective in human movement. It allows individuals to achieve tasks with minimum effort and energy expenditure, enabling better performance and reducing the risk of injury.
Is economic growth always desirable?
Yes but not always but mostly yes but sometimes no however it is normally yes but could be no yes and no
What is a very important database design ingredient and the highest level is not always the most desirable?
Normalization
What historical factors have an impact on the existence of domestic violence in our present society?
When the economy is in a recession, cases of domestic violence increase. Culturally, some people have always had it in their lives and they continue it generation after generation.
Why properties prices always increase?
It is not always increasing.
Why the oil prices always increasing in India?
economy
