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.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
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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 the nation's money supply lowers interest rates, thus decreases the cost of doing business. With a higher return on investment, investment spending increases and so too does aggregate supply. As aggregate supply increases, aggregate demand increases and so prices go up. Thus real GDP and APL increase.
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.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
dsfdsfs
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
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 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.
Lower Taxes
An increase in the nation's money supply lowers interest rates, thus decreases the cost of doing business. With a higher return on investment, investment spending increases and so too does aggregate supply. As aggregate supply increases, aggregate demand increases and so prices go up. Thus real GDP and APL increase.
it increases
When demand decreases, supply increases.
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand