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What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
What would cause the aggregate demand curve to shift to the right?
The aggregate demand curve will shift to the right as the economy expands. When that happens, the quantity of output demanded for a given price level rises.
What would cause a decrease in aggregate supply?
Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply
When demand rises and supply remains the same equilibrium price will... and equilibrium quantity will?
If aggregate demand rises and aggregate supply remains the same, the quantity supplied which increase. Consequently, the equilibrium price will increase, as will the equilibrium quantity. LOOK AT LINK BELOW: http://upload.wikimedia.org/wikipedia/en/thumb/e/eb/Supply-demand-right-shift-demand.svg/240px-Supply-demand-right-shift-demand.svg.png As you can see, if demand increased from D1 to D2, the price level would increase from P1 to P2, and the output would increase from Q1 to Q2. Hope this helps!
Which direction would the supply curve shift if there was a decrease in supply?
leftward
What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
What would cause the aggregate demand curve to shift to the right?
The aggregate demand curve will shift to the right as the economy expands. When that happens, the quantity of output demanded for a given price level rises.
What would cause a decrease in aggregate supply?
Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply
When demand rises and supply remains the same equilibrium price will... and equilibrium quantity will?
If aggregate demand rises and aggregate supply remains the same, the quantity supplied which increase. Consequently, the equilibrium price will increase, as will the equilibrium quantity. LOOK AT LINK BELOW: http://upload.wikimedia.org/wikipedia/en/thumb/e/eb/Supply-demand-right-shift-demand.svg/240px-Supply-demand-right-shift-demand.svg.png As you can see, if demand increased from D1 to D2, the price level would increase from P1 to P2, and the output would increase from Q1 to Q2. Hope this helps!
Why would an expansionary gap lead to a change in inflation Why would a recessionary gap lead to a change in inflation?
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
Which direction would the supply curve shift if there was a decrease in supply?
leftward
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
What events would cause a shift to the right in the supply curve?
Upgrades to its mixing equipment allow the plant to make more bars.
What does it mean when the supply curve shifts to the right?
A shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes even though price remains the same. So a shift to the right would mean the good quantity suppled has increased even the the price is still the same.
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
Shift in the aggregate demand curve?
Remember that aggregate demand is composed of consumer spending, investment spending, government spending, and net export spending. Many things affect consumer spending. The main things are consumer wealth, consumer expectations, household indebtedness, and taxes. The wealthier the consumers, the more they will spend. The higher the consumer's expectations are, the more they will spend. The lower the consumer's indebtedness, the more they will spend. The lower their taxes are, the more they will spend. If consumer spending increases, the aggregate demand curve will shift to the right. As for investment spendings: interest rates and expected returns affect this variable. As interest rates decrease, there will be more investments made. The higher a business's expected return is, the more they will invest. If more investments are being made, the aggregate demand curve will shift to the right. Change in government spending is pretty self explanatory. The more government decides to spend, the more aggregate demand will increase and therefore, shift to the right. For net expert spendings, a rising national income would mean more US exports. Moreover, a depreciation of the dollar causes more US exports. The more net exports there are, the more aggregate demand will increase and therefore, shift to the right.
Name and describe 5 reasons why there would be a change or shift in supply?
There would be a shift in supply if:1. The price of the inputs were to increase/decrease.2. A new technology was invented that made the production process fast - would shift supply up.3. If new capital was gained, like forests being cleared to make was for farming - would shift supply up.4. A change in the expected prices would increase/decrease supply.5. An improvement in weather will increase the productivity of the same amount of farmland - making an increase in demand.
