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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.
Yes, there is a tradeoff between unemployment and inflation when aggregate demand in an economy increases. As demand rises, businesses may need to hire more workers to meet the increased demand, leading to lower unemployment rates. However, if demand grows too quickly, it can also lead to inflation as businesses raise prices to match the higher demand. This tradeoff is known as the Phillips curve relationship.
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.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
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The interest rate does affect aggregate demand. As the interest rate falls, aggregate demand increases and vice-versa.
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.
increases competition increase unemployment economic restructuring increases competition increase unemployment economic restructuring
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
a clause in a contarct that automatically increases wages to account for increases in the price level