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What might happen to aggregate supply curve if there was a significant increase in the cost of foreign oil?
The aggregate supply curve shifts to the left as the price of key inputs rises, making a combination of lower output, higher unemployment, and higher inflation possible. When an economy experiences stagnant growth and high inflation at the same time it is referred to as stagflation.
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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.
If something happens and foreign consumers begin to buy more goods and services made in the US everything else held constant what do you predict will happen to aggregate demand?
If something happens and foreign consumers begin to buy more goods and services made in the United States, everything else held constant, what do you predict will happen to aggregate demandIf something happens and foreign consumers begin to buy more goods and services made in the United States, everything else held constant, what do you predict will happen to aggregate demand
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.
When aggregate supply exceeds aggregate demand what will happen to the price level?
The price will go down.
What will happen to the equilibrium price level and the real GDP if the aggregate demand decreases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
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.
If both aggregate output and the aggregate price level increase what will happen?
a decrease in need which will in turn surplus the output and decrease the price level. then output will decrease.
If something happens and foreign consumers begin to buy more goods and services made in the US everything else held constant what do you predict will happen to aggregate demand?
If something happens and foreign consumers begin to buy more goods and services made in the United States, everything else held constant, what do you predict will happen to aggregate demandIf something happens and foreign consumers begin to buy more goods and services made in the United States, everything else held constant, what do you predict will happen to aggregate demand
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.
When aggregate supply exceeds aggregate demand what will happen to the price level?
The price will go down.
What will happen to the equilibrium price level and the real GDP if the aggregate demand increases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
What will happen to the equilibrium price level and the real GDP if the aggregate demand decreases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
What will happen to the equilibrium price level and the real GDP if the 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.
When did Foreign War happen?
Foreign War happened in -346.
What will happen to the equilibrim price level and real GDP if aggregate demand and aggregate supply both increase?
If aggregate demand increases at every price level than the demand curve shifts to the right. In the short-run the new equilibrium forms from an increase in willingness to spend, thus higher prices and higher real GDP or quantity of output. If short-run aggregate supply increases at every price level than the supply curve shifts to the right. From the short-run to the long-run the new equilibrium forms from an increase willingness to sell, thus prices reduce to original equilibrium and output increases further. Recap: Prices stay constant while real GDP or total quantity of output increases.
Distinguish between discretionary and non-discretionary fiscal policy?
Non-discretionary policies are ones that automatically happen. A progressive income tax and the welfare system both act to increase aggregate demand in recessions and to decrease aggregate demand in overheated expansions. Discretionary policies are those that the government chooses to do in response to conditions -- e.g. enact a tax rate cut.
