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a. input prices 1. domestic resources prices 2. prices of imported resouces 3. market power b. productivity c. legal-institutional environment 1. Business Taxes and subsidies 2. government regulation

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Does increasing taxes decrease aggregate demand?

cause of incresing and decresing the Determinants of aggregate?


How is the equilibrium between price and quantity established?

In both micro and macroeconomics, the equilibrium level of price and quantity are determined by looking at the supply and demand curves (aggregate demand and aggregate supply curves in the case of macroeconomics). The supply and demand curves' steepness and position are established by specific determinants (there are both determinants of supply and determinants of demand). However, these two graphs don't immediately tell you the quantity and price of a good, or aggregate goods in an aggregate market. By looking at the intersection of these two graphs, you can establish the price and quantity. Drawing a vertical line from the intersection, you will arrive at the quantity that is demanded and should be supplied (equilibrium quantity). And drawing a horizontal line from the intersection will give you the price the supplier should charge and what people are willing to pay (equilibrium price).


What will happen when Aggregate demand and aggregate supply decrease?

When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.


What would cause a decrease in aggregate supply?

Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply


What happens to the demand curve when determinants change?

A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.

Related Questions

Does increasing taxes decrease aggregate demand?

cause of incresing and decresing the Determinants of aggregate?


How is the equilibrium between price and quantity established?

In both micro and macroeconomics, the equilibrium level of price and quantity are determined by looking at the supply and demand curves (aggregate demand and aggregate supply curves in the case of macroeconomics). The supply and demand curves' steepness and position are established by specific determinants (there are both determinants of supply and determinants of demand). However, these two graphs don't immediately tell you the quantity and price of a good, or aggregate goods in an aggregate market. By looking at the intersection of these two graphs, you can establish the price and quantity. Drawing a vertical line from the intersection, you will arrive at the quantity that is demanded and should be supplied (equilibrium quantity). And drawing a horizontal line from the intersection will give you the price the supplier should charge and what people are willing to pay (equilibrium price).


What will happen when Aggregate demand and aggregate supply decrease?

When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.


What would cause a decrease in aggregate supply?

Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply


What happens to the demand curve when determinants change?

A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.


What happen to demand curve when determinants change?

A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.


What is the key difference between the classical and Keynesian aggregate supply functions?

Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.


The quantity of full employment in the aggregate supply aggregate demand model is similar to the conditions in which other model?

The quantity of full employment in the aggregate supply aggregate demand model is similar to the conditions in which other model. (Market Supply and Demand.)


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.


What are the 3 determinants of supply elasticity?

people not stealing


What are the determinants of the dead weight loss in economics?

The determinants of the deadweight loss in economics are the price elasticities of supply and demand.

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