define aggregate demand and aggregate supply. explain the difference between the short run aggregate supply?
Q. hi all monday nights i host an economic meeting ebtween seven and nine feel free to leave comments and thoughts on questiions define aggregate demand and aggregate supply. explain the difference between the short run aggregate supply curve and the long run aggregate supply curve. explain why aggregate demand is inversely related to price level and describe how and why the aggregate demand curve can shift.
Asked by krissy - Fri May 9 17:16:22 2008 - - 1 Answers - 0 Comments
A. What you are asking for will take some time to explain. Try going to Wikipedia.org and reading a few paragraphs about aggregate demand and supply. I haven't heard anyone talk about it since I took Economics 101 in college.
Answered by Ray H - Sat May 10 01:08:04 2008
Q. hi all monday nights i host an economic meeting ebtween seven and nine feel free to leave comments and thoughts on questiions define aggregate demand and aggregate supply. explain the difference between the short run aggregate supply curve and the long run aggregate supply curve. explain why aggregate demand is inversely related to price level and describe how and why the aggregate demand curve can shift.
Asked by krissy - Fri May 9 17:16:22 2008 - - 1 Answers - 0 Comments
A. What you are asking for will take some time to explain. Try going to Wikipedia.org and reading a few paragraphs about aggregate demand and supply. I haven't heard anyone talk about it since I took Economics 101 in college.
Answered by Ray H - Sat May 10 01:08:04 2008
How would a stock market crash affect aggregate demand?
Q. If there were to be a stock market crash, how would it affect aggregate demand? And what if there had been equilibrium employment (i.e. full employment) what could a government do or what policies could it introduce to restore full employment?
Asked by stoby - Sun Jul 13 15:34:10 2008 - - 2 Answers - 0 Comments
A. recession of course. decrease int rates and a set of monetary adjustments to keep position blanced off course public exp could hav een here but more reponsive signalling needs to be made eg. tx holidays credit rating, yet publc exp sees t be involved in all this , gov needs to intervene but tat could suprt insteadof exclusion.
Answered by subhrodip - Sun Jul 13 16:33:25 2008
Q. If there were to be a stock market crash, how would it affect aggregate demand? And what if there had been equilibrium employment (i.e. full employment) what could a government do or what policies could it introduce to restore full employment?
Asked by stoby - Sun Jul 13 15:34:10 2008 - - 2 Answers - 0 Comments
A. recession of course. decrease int rates and a set of monetary adjustments to keep position blanced off course public exp could hav een here but more reponsive signalling needs to be made eg. tx holidays credit rating, yet publc exp sees t be involved in all this , gov needs to intervene but tat could suprt insteadof exclusion.
Answered by subhrodip - Sun Jul 13 16:33:25 2008
What effects would an increase of excise taxes on cigarettes have on aggregate demand or aggregate supply?
Q. What effects would each of the following have on aggregate demand or aggregate supply? In each case state where the aggregate demand effected and in which direction or the aggregate supply is effected and in which direction. Assume all other things remain constant. a. A widespread fear of depression on the part of consumers. b. A large purchase of US wheat by Russia. c. A $1 increase in the excise tax on cigarettes. d. A reduction in interest rates at each price level.
Asked by Allen W - Tue Jun 3 14:35:12 2008 - - 1 Answers - 0 Comments
A. a. A widespread fear of depression on the part of consumers. As consumers fear a depression, they will save more out of precaution. Hence, aggregate demand will decrease. b. A large purchase of US wheat by Russia. The increase in demand will incrase prices for wheat in the U.S., which will make wheat production more attractive to U.S. farmers. Hence, aggregate supply will increase. c. A $1 increase in the excise tax on cigarettes. It has been shown that higher prices for cigarettes discourage smoking. Every 10 percent increase in the price of cigarettes reduced youth smoking by about seven percent and overall cigarette consumption by about four percent. Hence, aggregate demand for cigarettes will decrease. d. A reduction in interest… [cont.]
Answered by Felix_FINA4242 - Tue Jun 3 22:18:54 2008
Q. What effects would each of the following have on aggregate demand or aggregate supply? In each case state where the aggregate demand effected and in which direction or the aggregate supply is effected and in which direction. Assume all other things remain constant. a. A widespread fear of depression on the part of consumers. b. A large purchase of US wheat by Russia. c. A $1 increase in the excise tax on cigarettes. d. A reduction in interest rates at each price level.
Asked by Allen W - Tue Jun 3 14:35:12 2008 - - 1 Answers - 0 Comments
A. a. A widespread fear of depression on the part of consumers. As consumers fear a depression, they will save more out of precaution. Hence, aggregate demand will decrease. b. A large purchase of US wheat by Russia. The increase in demand will incrase prices for wheat in the U.S., which will make wheat production more attractive to U.S. farmers. Hence, aggregate supply will increase. c. A $1 increase in the excise tax on cigarettes. It has been shown that higher prices for cigarettes discourage smoking. Every 10 percent increase in the price of cigarettes reduced youth smoking by about seven percent and overall cigarette consumption by about four percent. Hence, aggregate demand for cigarettes will decrease. d. A reduction in interest… [cont.]
Answered by Felix_FINA4242 - Tue Jun 3 22:18:54 2008
Why is GDP useful in measuring aggregate demand in macroeconomics?
Q. GDP is the overall value of final products in a given country, in a given time, usually a year Aggregate demand is the quantity of goods and services that people are willing to buy at a given level of prices.
Asked by jakobdallasjnksdg - Sat Feb 16 20:53:52 2008 - - 2 Answers - 0 Comments
A. When you figure the aggregate demand curve, it tells us the equilibrium real GDP at any price level. Also, a rise in the price level causes a decrease in equilibrium GDP.
Answered by mnid007 - Sat Feb 16 21:15:46 2008
Q. GDP is the overall value of final products in a given country, in a given time, usually a year Aggregate demand is the quantity of goods and services that people are willing to buy at a given level of prices.
Asked by jakobdallasjnksdg - Sat Feb 16 20:53:52 2008 - - 2 Answers - 0 Comments
A. When you figure the aggregate demand curve, it tells us the equilibrium real GDP at any price level. Also, a rise in the price level causes a decrease in equilibrium GDP.
Answered by mnid007 - Sat Feb 16 21:15:46 2008
Having trouble with aggregate supply and demand curves?
Q. Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. (Draw a graph. I don't think anyone can do that. But it would be awesome cause thats a huge part I don't get) (a) Households decide to save a larger share of their income. (b) Florida orange groves suffer a prolonged period of below freezing temperatures. (c) Increase job opportunities overseas cause many people to leave the country.
Asked by Brad - Sun Dec 9 23:44:10 2007 - - 1 Answers - 0 Comments
A. Isn't the macro-economy so much fun! (or not) A. Left-ward shift of AD curve only. Greater household saving means less household consumption at every price level so the whole AD curve shifts to the left. B. Neither. The AD-AS-LRAS model doesn't reflect sector specific shocks. C. Left-ward shift of AD and AS curves. More people moving abroad means fewer households to drive consumer spending so AD shifts to the left. People moving abroad also means wages must rise here to encourage some workers to stay. This drives up the cost of production so the AS curve shifts to the left.
Answered by Hubris252 - Mon Dec 10 06:26:21 2007
Q. Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. (Draw a graph. I don't think anyone can do that. But it would be awesome cause thats a huge part I don't get) (a) Households decide to save a larger share of their income. (b) Florida orange groves suffer a prolonged period of below freezing temperatures. (c) Increase job opportunities overseas cause many people to leave the country.
Asked by Brad - Sun Dec 9 23:44:10 2007 - - 1 Answers - 0 Comments
A. Isn't the macro-economy so much fun! (or not) A. Left-ward shift of AD curve only. Greater household saving means less household consumption at every price level so the whole AD curve shifts to the left. B. Neither. The AD-AS-LRAS model doesn't reflect sector specific shocks. C. Left-ward shift of AD and AS curves. More people moving abroad means fewer households to drive consumer spending so AD shifts to the left. People moving abroad also means wages must rise here to encourage some workers to stay. This drives up the cost of production so the AS curve shifts to the left.
Answered by Hubris252 - Mon Dec 10 06:26:21 2007
Which of the following would most likely shift the aggregate demand curve to the right?
Q. Which of the following would most likely shift the aggregate demand curve to the right? A. An increase in stock prices that increases consumer wealth. B. Increased fear that a recession will cause workers to lose their jobs. C. An increase in personal income tax rates. D. A reduction in household borrowing because of tighter lending practices.
Asked by Ocean - Tue Jul 7 18:14:27 2009 - - 1 Answers - 0 Comments
A. Its definitely A because if the curve moves to the right it means demand is increased. and if consumer wealth increases then they will ahv more money to buy stuff which will increase the aggregate demand and shift the curve to the right
Answered by Brad. - Tue Jul 7 18:19:23 2009
Q. Which of the following would most likely shift the aggregate demand curve to the right? A. An increase in stock prices that increases consumer wealth. B. Increased fear that a recession will cause workers to lose their jobs. C. An increase in personal income tax rates. D. A reduction in household borrowing because of tighter lending practices.
Asked by Ocean - Tue Jul 7 18:14:27 2009 - - 1 Answers - 0 Comments
A. Its definitely A because if the curve moves to the right it means demand is increased. and if consumer wealth increases then they will ahv more money to buy stuff which will increase the aggregate demand and shift the curve to the right
Answered by Brad. - Tue Jul 7 18:19:23 2009
2. Which of the following factors does not cause the aggregate demand curve to shift?
Q. 2. Which of the following factors does not cause the aggregate demand curve to shift? a. A change in the price level. B. A change in government policies. C. A change in the expectations of households and firms. D. A change in the economic performance of foreign trading partners.
Asked by bob - Mon Nov 24 17:59:14 2008 - - 1 Answers - 0 Comments
A. Don't take it for the unquestionable truth but I guess the A: a change in the prince level. The AD curve directly derives from the IS-LM level which is not affected by price levels. A price level shift influences the AS curve, and then indirectly the AD curve which shifts in order to adjust herself to the natural production level, Yn
Answered by Andre - Mon Nov 24 18:11:06 2008
Q. 2. Which of the following factors does not cause the aggregate demand curve to shift? a. A change in the price level. B. A change in government policies. C. A change in the expectations of households and firms. D. A change in the economic performance of foreign trading partners.
Asked by bob - Mon Nov 24 17:59:14 2008 - - 1 Answers - 0 Comments
A. Don't take it for the unquestionable truth but I guess the A: a change in the prince level. The AD curve directly derives from the IS-LM level which is not affected by price levels. A price level shift influences the AS curve, and then indirectly the AD curve which shifts in order to adjust herself to the natural production level, Yn
Answered by Andre - Mon Nov 24 18:11:06 2008
How do you do aggregate demand curve equations?
Q. Ok, here's my question: If aggregate demand curve in an economy is Y = 40,000 - 20,000 p , current inflation equals 0.06 (6 %), and potential output (Y*) equals 38,400, then in the short run equilibrium output equals ___ and in the long run the inflation rate equals ___ percent. The ANSWER is 38,800; 8 But I have NO idea how they got that. Can anyone help explain this to me? MUCH appreciated
Asked by unknown - Sat Apr 18 21:44:09 2009 - - 1 Answers - 0 Comments
A. Y = 40,000 - 20,000p p=rate of inflation=0.06 Y = 40,000 - 20,000(.06) Y = 40,000 - 1,200 Y = 38,800
Answered by soupisgoodfood - Sun Apr 19 02:44:31 2009
Q. Ok, here's my question: If aggregate demand curve in an economy is Y = 40,000 - 20,000 p , current inflation equals 0.06 (6 %), and potential output (Y*) equals 38,400, then in the short run equilibrium output equals ___ and in the long run the inflation rate equals ___ percent. The ANSWER is 38,800; 8 But I have NO idea how they got that. Can anyone help explain this to me? MUCH appreciated
Asked by unknown - Sat Apr 18 21:44:09 2009 - - 1 Answers - 0 Comments
A. Y = 40,000 - 20,000p p=rate of inflation=0.06 Y = 40,000 - 20,000(.06) Y = 40,000 - 1,200 Y = 38,800
Answered by soupisgoodfood - Sun Apr 19 02:44:31 2009
In the long run , without government intervention, the economy responds to a decrease in aggregate demand with?
Q. A) an increase in aggregate demand. B) a second decrease in aggregate demand. C) an increase in short-run aggregate supply. D) a decrease in short-run aggregate supply.
Asked by simbainkempner - Sat Jul 25 18:12:01 2009 - - 1 Answers - 0 Comments
A. "D" IF your demand has decreased in the long run, the most pragmatic and fastest solution would be to cut supply in the short run. the variables that contribute to the decrease in demand may change quickly and production can resume at its original level. However closing the business or selling plant assets is to radical a change. Just cut the supply in the short run is the solution
Answered by unknown - Sat Jul 25 20:36:31 2009
Q. A) an increase in aggregate demand. B) a second decrease in aggregate demand. C) an increase in short-run aggregate supply. D) a decrease in short-run aggregate supply.
Asked by simbainkempner - Sat Jul 25 18:12:01 2009 - - 1 Answers - 0 Comments
A. "D" IF your demand has decreased in the long run, the most pragmatic and fastest solution would be to cut supply in the short run. the variables that contribute to the decrease in demand may change quickly and production can resume at its original level. However closing the business or selling plant assets is to radical a change. Just cut the supply in the short run is the solution
Answered by unknown - Sat Jul 25 20:36:31 2009
How will the international value of the dollar and U.S. aggregate demand change when affect by these events?
Q. Assume that the United States has a flexible exchange rate. Explain how each of the following events individually will affect the international value of the dollar and U.S. aggregate demand as a result of the changing value of the dollar. 1. The United States hosts the World Cup. 2. An airline strike cripples international travel to the United States. 3. Scottish investors purchase a large amount of American bonds. 4. Inflation in the United States increases dramatically. 5. Unemployment in the United States increases dramatically.
Asked by xMacroeconx - Wed May 27 23:31:04 2009 - - 2 Answers - 0 Comments
A. 1. Value goes up 2. Value goes down 3. Value goes up 4. Value goes down 5. Value goes up
Answered by unknown - Wed May 27 23:37:54 2009
Q. Assume that the United States has a flexible exchange rate. Explain how each of the following events individually will affect the international value of the dollar and U.S. aggregate demand as a result of the changing value of the dollar. 1. The United States hosts the World Cup. 2. An airline strike cripples international travel to the United States. 3. Scottish investors purchase a large amount of American bonds. 4. Inflation in the United States increases dramatically. 5. Unemployment in the United States increases dramatically.
Asked by xMacroeconx - Wed May 27 23:31:04 2009 - - 2 Answers - 0 Comments
A. 1. Value goes up 2. Value goes down 3. Value goes up 4. Value goes down 5. Value goes up
Answered by unknown - Wed May 27 23:37:54 2009
Plzzz help me on this equilibrium and aggregate demand increase question?
Q. Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases. As the economy moves to short-run macroeconomics equilibrium, there is: A) a recessionary gap with high inflation. B) a recessionary gap with high inflation. C) an inflationary gap with high unemployment. D) an inflationary gap with low unemployment.
Asked by GetSmart - Fri Jul 25 15:18:09 2008 - - 2 Answers - 0 Comments
A. The answer is D. Here is why: The setup of the problem assumes that we are producing just enough to fill the current aggregate demand. Now if demand increases, it will outpace supply. This will cause the price of goods to rise. While supply is racing to catch up, there will be less unemployment while producers struggle to make more goods to meet the increased demand.
Answered by Hello G - Fri Jul 25 15:35:11 2008
Q. Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases. As the economy moves to short-run macroeconomics equilibrium, there is: A) a recessionary gap with high inflation. B) a recessionary gap with high inflation. C) an inflationary gap with high unemployment. D) an inflationary gap with low unemployment.
Asked by GetSmart - Fri Jul 25 15:18:09 2008 - - 2 Answers - 0 Comments
A. The answer is D. Here is why: The setup of the problem assumes that we are producing just enough to fill the current aggregate demand. Now if demand increases, it will outpace supply. This will cause the price of goods to rise. While supply is racing to catch up, there will be less unemployment while producers struggle to make more goods to meet the increased demand.
Answered by Hello G - Fri Jul 25 15:35:11 2008
What is the effects of the following events on the Aggregate Demand curve.?
Q. a) An increase in RGDP in Europe and Japan b) A decline in U.S. households expectations of their future income. c) A reduction in Medicaid and Medicare benefit levels. d) An increase in business expectations of future aggregate demand growth e) An increase in government spending on military hardware f) A sharp decline in the value of foreign currencies relative to the value of the $. g) A decline in the prices of real estate and existing residential housing. h) A rise in the price level due to a sharp increase in the price of oil.
Asked by Cer - Wed Jun 18 19:32:03 2008 - - 1 Answers - 0 Comments
A. What is the effects of the following events on the Aggregate Demand curve.? a) An increase in RGDP in Europe and Japan -- Aggregate demand rises. b) A decline in U.S. households expectations of their future income. -- Aggregate Demand tends to fall c) A reduction in Medicaid and Medicare benefit levels. -- Aggregate demand is unaffected largely as private expenditure on medical treatment rises but total may tend to fall d) An increase in business expectations of future aggregate demand growth -- Increases aggregate demand through higher capital expenditure by businesses e) An increase in government spending on military hardware --Increases aggregate demand f) A sharp decline in the value of foreign currencies relative to the value of the… [cont.]
Answered by 8^3release - Sun Jun 22 08:27:40 2008
Q. a) An increase in RGDP in Europe and Japan b) A decline in U.S. households expectations of their future income. c) A reduction in Medicaid and Medicare benefit levels. d) An increase in business expectations of future aggregate demand growth e) An increase in government spending on military hardware f) A sharp decline in the value of foreign currencies relative to the value of the $. g) A decline in the prices of real estate and existing residential housing. h) A rise in the price level due to a sharp increase in the price of oil.
Asked by Cer - Wed Jun 18 19:32:03 2008 - - 1 Answers - 0 Comments
A. What is the effects of the following events on the Aggregate Demand curve.? a) An increase in RGDP in Europe and Japan -- Aggregate demand rises. b) A decline in U.S. households expectations of their future income. -- Aggregate Demand tends to fall c) A reduction in Medicaid and Medicare benefit levels. -- Aggregate demand is unaffected largely as private expenditure on medical treatment rises but total may tend to fall d) An increase in business expectations of future aggregate demand growth -- Increases aggregate demand through higher capital expenditure by businesses e) An increase in government spending on military hardware --Increases aggregate demand f) A sharp decline in the value of foreign currencies relative to the value of the… [cont.]
Answered by 8^3release - Sun Jun 22 08:27:40 2008
How does a "tight money policy" shift the aggregate demand curve?
Q. A tight money policy is designed to shift the: aggregate demand curve rightward. aggregate demand curve leftward. aggregate supply curve rightward. aggregate supply curve leftward.
Asked by Lovin29 - Tue May 5 13:00:26 2009 - - 1 Answers - 0 Comments
A. aggregate demand curve rightward
Answered by Satch JR - Tue May 5 14:22:25 2009
Q. A tight money policy is designed to shift the: aggregate demand curve rightward. aggregate demand curve leftward. aggregate supply curve rightward. aggregate supply curve leftward.
Asked by Lovin29 - Tue May 5 13:00:26 2009 - - 1 Answers - 0 Comments
A. aggregate demand curve rightward
Answered by Satch JR - Tue May 5 14:22:25 2009
The aggregate expenditures model and the aggregate demand?
Q. The aggregate expenditures model and the aggregate demand curve can be reconciled because, other things equal, in the aggregate expenditures model: a. changes in the price level have no effect on the equilibrium level of GDP. b. an increase in the price level increases the real value of wealth. c. the level of aggregate expenditures and therefore the level of real GDP vary inversely with the price level. d. the level of aggregate expenditures and therefore the level of real GDP vary directly with the price level
Asked by unknown - Sat Jun 27 22:04:02 2009 - - 1 Answers - 0 Comments
A. I'm curious as to what this has to do with Local Business in Houston, Texas? You know, a decent macroeconomic textbook will help you better than Yahoo Answers will.
Answered by William K - Sat Jun 27 23:02:35 2009
Q. The aggregate expenditures model and the aggregate demand curve can be reconciled because, other things equal, in the aggregate expenditures model: a. changes in the price level have no effect on the equilibrium level of GDP. b. an increase in the price level increases the real value of wealth. c. the level of aggregate expenditures and therefore the level of real GDP vary inversely with the price level. d. the level of aggregate expenditures and therefore the level of real GDP vary directly with the price level
Asked by unknown - Sat Jun 27 22:04:02 2009 - - 1 Answers - 0 Comments
A. I'm curious as to what this has to do with Local Business in Houston, Texas? You know, a decent macroeconomic textbook will help you better than Yahoo Answers will.
Answered by William K - Sat Jun 27 23:02:35 2009
Which of the following government policies shift the aggregate demand curve to the right? ?
Q. Which of the following government policies shift the aggregate demand curve to the right? a. Increasing personal income taxes. B. Increasing business taxes. C. Increasing government purchases. D. All of the government policies cited here.
Asked by bob - Sat Nov 22 19:26:08 2008 - - 2 Answers - 0 Comments
Q. Which of the following government policies shift the aggregate demand curve to the right? a. Increasing personal income taxes. B. Increasing business taxes. C. Increasing government purchases. D. All of the government policies cited here.
Asked by bob - Sat Nov 22 19:26:08 2008 - - 2 Answers - 0 Comments
Consider an economy that is initially at equilibrium level of real GDP. Using an aggregate demand and aggre?
Q. Consider an economy that is initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram, graphically illustrate and discuss the short-run and long-run effects of the following events upon the economy: (b)The government raises tax rates in the annual national budget. (c)The government has to obey carbon emissions to improve the global climate (d)An appreciation in the country exchange s rate. (e)A rise in house prices (Hint: wealth effect)
Asked by Abhishek A - Wed Oct 10 14:48:40 2007 - - 1 Answers - 0 Comments
A. I have to first clarify here. True equilibrium is a rare thing. For that one must undestand other sciences as well. True equilibrium is a situation when wants = means for that country. Law of Conservation is the cause and Law of Equilibrium is the effect. In systems of matter and energy, matter and energy move from higher concentration to lower concentration till equilibrium is reached. Example: when a tyre bursts, air rushes out of the tube. Remember that atmosphere contains more air than the tube but air is concentrated in the tube. Similarly, when hot water is mixed with cold water, heat moves from higher temperature to lower temeperature even though cold water may contain more heat energy. Similarly, wealth moves from higher… [cont.]
Answered by bvgopinath2001 - Thu Oct 11 07:40:11 2007
Q. Consider an economy that is initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram, graphically illustrate and discuss the short-run and long-run effects of the following events upon the economy: (b)The government raises tax rates in the annual national budget. (c)The government has to obey carbon emissions to improve the global climate (d)An appreciation in the country exchange s rate. (e)A rise in house prices (Hint: wealth effect)
Asked by Abhishek A - Wed Oct 10 14:48:40 2007 - - 1 Answers - 0 Comments
A. I have to first clarify here. True equilibrium is a rare thing. For that one must undestand other sciences as well. True equilibrium is a situation when wants = means for that country. Law of Conservation is the cause and Law of Equilibrium is the effect. In systems of matter and energy, matter and energy move from higher concentration to lower concentration till equilibrium is reached. Example: when a tyre bursts, air rushes out of the tube. Remember that atmosphere contains more air than the tube but air is concentrated in the tube. Similarly, when hot water is mixed with cold water, heat moves from higher temperature to lower temeperature even though cold water may contain more heat energy. Similarly, wealth moves from higher… [cont.]
Answered by bvgopinath2001 - Thu Oct 11 07:40:11 2007
Given an upward-sloping aggregate supply curve, an increase in aggregate demand will?
Q. Given an upward-sloping aggregate supply curve, an increase in aggregate demand will (a) decrease both real GDP and the price level. (b) increase real GDP, but decrease the price level. (c) decrease real GDP, but increase the price level. (d) increase real GDP at a constant price level. (e) increase both real GDP and the price level.
Asked by Jimmy F - Thu Dec 6 18:59:49 2007 - - 2 Answers - 0 Comments
A. e) If we are talking about a shift in a downward-sloping demand curve to the right, then both GDP and price will rise. GDP refers to total produce. When demand incraeses in an environment with upward-sloping supply curve, more products will be sold. Price will also price b/c supply curve is upward sloping.
Answered by schp - Sat Dec 8 06:55:12 2007
Q. Given an upward-sloping aggregate supply curve, an increase in aggregate demand will (a) decrease both real GDP and the price level. (b) increase real GDP, but decrease the price level. (c) decrease real GDP, but increase the price level. (d) increase real GDP at a constant price level. (e) increase both real GDP and the price level.
Asked by Jimmy F - Thu Dec 6 18:59:49 2007 - - 2 Answers - 0 Comments
A. e) If we are talking about a shift in a downward-sloping demand curve to the right, then both GDP and price will rise. GDP refers to total produce. When demand incraeses in an environment with upward-sloping supply curve, more products will be sold. Price will also price b/c supply curve is upward sloping.
Answered by schp - Sat Dec 8 06:55:12 2007
What would cause the aggregate demand curve to decrease, ceteris paribus?
Q. A. Strong performance of foreign economies. B. A decrease in interest rates. C. An increase in income taxes. D. An increase in the value of the stock market.
Asked by unknown - Fri May 8 18:47:45 2009 - - 1 Answers - 0 Comments
Q. A. Strong performance of foreign economies. B. A decrease in interest rates. C. An increase in income taxes. D. An increase in the value of the stock market.
Asked by unknown - Fri May 8 18:47:45 2009 - - 1 Answers - 0 Comments
aggregate demand when there are only 2 customers?
Q. I've got a microeconomics question; If there are only two people in the economy, and you want to find the aggregate demand, how do you find it? Person 1 Demand for Fish= I / 2Pf Person 2 Demand for Fish= I / 3Pf p.s. I stands for income Thanks!
Asked by jelly - Thu Nov 6 02:19:15 2008 - - 1 Answers - 0 Comments
A. Didn't know micro dealt with the aggregate, but either way, I would think the aggregate demand, or the total demand for the market, given only 2 consumers, would be the sum of each consumer's individual demand curve. D1 + D2 = AD Just add 'em up and see what you get. Hope that helps.
Answered by Tangent - Thu Nov 6 02:48:31 2008
Q. I've got a microeconomics question; If there are only two people in the economy, and you want to find the aggregate demand, how do you find it? Person 1 Demand for Fish= I / 2Pf Person 2 Demand for Fish= I / 3Pf p.s. I stands for income Thanks!
Asked by jelly - Thu Nov 6 02:19:15 2008 - - 1 Answers - 0 Comments
A. Didn't know micro dealt with the aggregate, but either way, I would think the aggregate demand, or the total demand for the market, given only 2 consumers, would be the sum of each consumer's individual demand curve. D1 + D2 = AD Just add 'em up and see what you get. Hope that helps.
Answered by Tangent - Thu Nov 6 02:48:31 2008
How do Keynsians feel that government can stimulate "aggregate demand" by increasing spending?
Q. If there is no such thing as a free lunch, certainly some one must lose purchasing power for the government to increase spending.
Asked by johma513 - Tue Aug 18 12:00:16 2009 - - 5 Answers - 0 Comments
A. The economy is currently well below maximum capacity. Less goods are produced, which is less for all of us, collectively speaking. The government borrowing and then deficit spending increases aggregate demand and economic production, which is more output for all of us. That's the important essence of it... increasing output. The Fed has already increased the money supply and lowered interests rates all that it can to increase demand. The demand for money (for loans) is so low that the government is the only entity left that can provide additional demand. PS. I don't think "anticommunist" understands Keynes at all.
Answered by Timofmars - Tue Aug 18 17:33:48 2009
Q. If there is no such thing as a free lunch, certainly some one must lose purchasing power for the government to increase spending.
Asked by johma513 - Tue Aug 18 12:00:16 2009 - - 5 Answers - 0 Comments
A. The economy is currently well below maximum capacity. Less goods are produced, which is less for all of us, collectively speaking. The government borrowing and then deficit spending increases aggregate demand and economic production, which is more output for all of us. That's the important essence of it... increasing output. The Fed has already increased the money supply and lowered interests rates all that it can to increase demand. The demand for money (for loans) is so low that the government is the only entity left that can provide additional demand. PS. I don't think "anticommunist" understands Keynes at all.
Answered by Timofmars - Tue Aug 18 17:33:48 2009
From Yahoo Answer Search: 'Aggregate demand'
Fri Sep 4 12:52:55 2009 [ refresh local cache ]
[Hide]▼
egwald.com
300px x 500px | 2.70kB
[source page]
Aggregate Demand Classical Keynesian Economy
gulzar05.blogspot.com
gulzar
Sun, 05 Jul 2009 23:54:00 GM
Interesting trends in . aggregate demand. from the Economic Survey 2008-09 1. The slowdown has taken a massive hit on the private consumption whose contribution to GDP growth halved from 53.8% of GDP in 2007-08 to 27% in 2008-09, ...
[Hide]▲
