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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.
What is aggregate demand and what are the factors that affect aggregate demand?
nothing
Which of these is centered on aggregate demand?
Fiscal policy is centered on aggregate demand.
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
Hich of the following defines aggregate demand?
Aggregate demand is defined as the total demand for goods and services at a certain price level during a a specific time period. This may be referring to Gross Domestic Product of a country or a single company.
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.
What is aggregate demand and what are the factors that affect aggregate demand?
nothing
Which of these is centered on aggregate demand?
Fiscal policy is centered on aggregate demand.
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
Hich of the following defines aggregate demand?
Aggregate demand is defined as the total demand for goods and services at a certain price level during a a specific time period. This may be referring to Gross Domestic Product of a country or a single company.
The demand and supply conditions of a product are represented by the following equations Aggregate Demand Q equals 15-0.3P Aggregate Supply Q equals 5- 0.1P Calculate the equilibrium price?
aggregate demance=Q=15-0.3p and aggregate supply =5-0.1p calculate the equlibrium price
What is the required change in aggregate demand to bring the economy back to its long-run equilibrium?
To bring the economy back to its long-run equilibrium, the required change in aggregate demand would need to be equal to the difference between the current level of aggregate demand and the level of aggregate demand that corresponds to the long-run equilibrium. This change would need to be sufficient to close the gap between the two levels and restore balance in the economy.
Why interest rate has no affect on the aggregate demand?
The interest rate does affect aggregate demand. As the interest rate falls, aggregate demand increases and vice-versa.
Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?
Aggregate demand curve.
Using the AD-AS framework what is the impact on equilibrium price and output when there are increase in aggregate demand and aggregate supply simultaneously?
AD-AS represents aggregate demand curve (AD) and aggregate supply curve (AS). "In the aggregate demand-aggregate supply model, each point on the aggregate demand curve is an outcome of the IS-LM model for aggregate demand Y based on a particular price level. Starting from one point on the aggregate demand curve, at a particular price level and a quantity of aggregate demand implied by the IS-LM model for that price level, if one considers a higher potential price level, in the IS-LM model the real money supply M/P will be lower and hence the LM curve will be shifted higher, leading to lower aggregate demand; hence at the higher price level the level of aggregate demand is lower, so the aggregate demand curve is negatively sloped
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
The quantity of full employment in the aggregate supply aggregate demand model is similar to the conditions in which other model?
The quantity of full employment in the aggregate supply aggregate demand model is similar to the conditions in which other model. (Market Supply and Demand.)
