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Why doesn't an increase in aggregate demand translate directly into an increase in real GDP?
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP
An increase in interest rates affects aggregate demand by?
An increase in interest rates decreases the aggregate demand shifting the curve to the left.
What happens with a decrease in aggregate demand?
Aggreagate demand will increase.
What is demand push inflation?
Demand-pull is caused by an increase in aggregate 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.
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP?
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP
An increase in interest rates affects aggregate demand by?
An increase in interest rates decreases the aggregate demand shifting the curve to the left.
What happens with a decrease in aggregate demand?
Aggreagate demand will increase.
What is demand push inflation?
Demand-pull is caused by an increase in aggregate demand.
What increase aggregate demand?
Anything -other than the desired (product/service)'s price- that would change the demand for a product/service would increase aggregate demand. Some examples may be: increased incomes, increased population, increased price of substitute products, etc..
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 would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
An increase in taxes shifts the aggregate demand curve to the?
Left
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
Because tax cuts will likely affect both aggregate demand and aggregate supply does it matter which is affected more?
Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
