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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


Why do wages and row material affect short-run aggregate supply but not long-run aggregate supply?

wages and raw material effect short run aggregate supply because of productivity factor but money is neutral in the long run so will never effect long run


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.


Concern about an international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply?

aggregate demand will decrease, lowering both real GDP and the price level


What is the effect of grading of aggregate on workability?

Grading of Aggregates enhances workability of concrete.


Explain the subsititution and income effect of decrease in price?

substitution effect is the explanation for the downward slope of the aggregate damnd curve.


What is the effect of the salt contamination of aggregate in concrete?

It would weaken the concrete, so keep out the salt.


Explain movements along the aggregate demand curve and shifts of the aggregate demand curve?

Movements along the aggregate demand curve are caused by changes in price level - real wealth effect, interest rate effect and open economy effect. If some non-price level determinant causes total spending to increase/decrease then the curve will shift to the right/left - consumption, investment, government expenditure, net exports.


Concern about an international crisis has caused consumers to save their money and postpone big purchases what is the effect on aggregate demand and supply?

aggregate demand will decrease, lowering both real GDP and the price level


True or False The real wealth effect is one reason for the negative slope of the aggregate demand curve?

true


What has the author I G Standish written?

I. G. Standish has written: 'The effect of lateral pressure on anchorage bond in lightweight aggregate concrete'


What did marshal borrow from the marginalist?

In his development of economic theory, Alfred Marshall included the concept of demand, the aggregate effect of consumers who desire products or services.