Aggreagate demand will 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.
decrease in aggregate demand
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
cause of incresing and decresing the Determinants of aggregate?
right
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.
decrease in aggregate demand
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
cause of incresing and decresing the Determinants of aggregate?
right
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.
aggregate demand will decrease, lowering both real GDP and the price level
No
The Aggregate demand will shift to the right. this is because the output increases as well as the price level. When taxes decrease, it causes the shift. Th short run and Long run will also increase
Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
aggregate demand will decrease, lowering both real GDP and the price level