Deflation
Because if a price level is higher for a good, aggregate spending will decrease as the level of the price increases. And vice versa - the cheaper a good is, OR the MORE that your money will buy, the more likely you are to spend that money.
Keynesian model- where AS is upward sloping, GDP will decrease and inflation will either increase or decrease, this depends on which decrease is larger.. Neo classical- GDP will remain the same and price level decreases. The first answer is the one you would use in a class. Try drawing them out and seeing what happens, shift both curves to the left, put Y(GDP) on the x axis and Inflation(Price level) on the y axis.
The reduction in the money supply increases the price level, causes deflation, and may increase or decrease the GDP depending on the level of rational expectations.
It would decrease, if there are lower prices, than people would naturally demand less of it. This is the quantity theory of money Money Demand= Price level*Income/Velocity of Money, what is important here is that Price level is in the numerator, so when it decreases the total quantity of money decreases as well.
aggregate demand will decrease, lowering both real GDP and the price level
a decrease in need which will in turn surplus the output and decrease the price level. then output will decrease.
Because if a price level is higher for a good, aggregate spending will decrease as the level of the price increases. And vice versa - the cheaper a good is, OR the MORE that your money will buy, the more likely you are to spend that money.
Keynesian model- where AS is upward sloping, GDP will decrease and inflation will either increase or decrease, this depends on which decrease is larger.. Neo classical- GDP will remain the same and price level decreases. The first answer is the one you would use in a class. Try drawing them out and seeing what happens, shift both curves to the left, put Y(GDP) on the x axis and Inflation(Price level) on the y axis.
The reduction in the money supply increases the price level, causes deflation, and may increase or decrease the GDP depending on the level of rational expectations.
It would decrease, if there are lower prices, than people would naturally demand less of it. This is the quantity theory of money Money Demand= Price level*Income/Velocity of Money, what is important here is that Price level is in the numerator, so when it decreases the total quantity of money decreases as well.
aggregate demand will decrease, lowering both real GDP and the price level
The value will decrease by 50%.
Deflation is decrease in general price level of services and goods. Deflation occur when inflation rate is 0%
There will be a decrease in price and quantity.
Cost pushes the price of products up. Demand will decrease. Output will be reduced.
This is a 20% decrease in price.
I do not think that the Gold Price will decrease in future