Describe what the effect on aggregate demand would be, other things being equal, if exports increase. both imports and exports decrease. consumption decreases. investment increases. investment decreases and government purchases increase. the price level increases. the price level decreases.
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Describe what the effect on aggregate
exports increase.
both imports and exports decrease.
consumption decreases.
investment increases.
investment decreases and government purchases increase.
the
the price level decreases.
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Solved in 3 steps
- Identify how each of the following changes will affect Aggregate Demand An increase in consumers disposable income A decrease in Investment spending due to pessimistic forecasts concerning the future A global pandemic resulting in business closures and an increase in the unemployment level The federal government increases spending on roads, bridges, and school repairs The federal government reduces the federal income tax resulting in an increase in household disposable incomeWhich of the following both shift the aggregate demand curve to the right? Group of answer choices net exports rise for some reason other than a price change and the money supply rises. net exports fall for some reason other than a price change and the money supply rises. net exports rise for some reason other than a price change and the price level rises. net exports fall for some reason other than a price change and the price level rises.The aggregate demand curve shifts to the right when * Taxes are cut Government spending are reduced Interest rate is increases Net exports are decreases
- Which of the following both shift aggregate demand left? Answer a decrease in taxes and at a given price level consumers feel more wealthy a decrease in taxes and at a given price level consumers feel less wealthy an increase in taxes and at a given price level consumers feel more wealthy an increase in taxes and at a given price level consumers feel less wealthyAggregate demand is..? A) Sum of consumption, imports and exports. B) Sum of the demand for all of the goods consumed in the economy. C) Sum of the demand for all of the goods produced in the economy, including exported goods. D) Sum of the demand for all of the goods and services produced in the economy.In order to break stagflation, the government has to increase expenditure on food subsidies in the form of food vouchers, unemployment benefits or allowances, wages subsidy to increase household consumption expenditure and boost up the AD. With increased consumption expenditure, aggregate demand will rise, which would send a signal to the aggregate supply (AS) to raise production. This will create a positive effect, which will bring the economy out of recession. Show this in a graph.
- Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia.Consumption spending was $150$150 billion, investment spending was $40$40 billion, government spending was $50$50 billion, spending on exports was $42$42billion, and spending on imports was $35$35 billion. The price level increases, resulting in a decline in investment spending by 30%30%. Consumption spending decreases by 10%10%.If other factors stay at the same level, determine aggregate demand after the price level increased. Enter your answer in the box below.Aggregate demand is the total quantity of output A)consumers actually buy. B) producers are able and willing to supply at different price levels. C) demanded if the economy is in equilibrium. D) demanded at different price levels in a given time period.
- The components of aggregate demand are: The components of aggregate demand are: A. consumption, investment, government and exports B. consumption, investment, government and imports C. consumption, investment, government and net exports D. consumption, investment, and net exports, since only private expenditures are includedThe economy experiences a decrease in the price level and an increase in real domestic output. Which is a likely explanation? Pick your answer from below and explain your answer choice using aggregate demand and aggregate supply. Consumer incomes and the quantity of labor have decreased. Business costs and wage rates have decreased. The prices of imported resources have increased. National income abroad has increased.Which of the following would shift the U.S. aggregate demand to the right? European countries increased demand for US products A world economic recession US companies increased imports of oil Canada reduced the demand for US products