Discuss one (1) reason for the downward sloping aggregate demand curve.

Q: If the economy experiences inflation and economic growth, this means that aggregate demand grows by…

A: When there is a positive/rightward shift in the AD(from AD0 to AD1), which is larger than the shift…

Q: Identify the three ranges of the aggregate supply curve. explain the impact of an increase in the…

A: Aggregate supply is the output flow in an economy based on the change in productions in the economy…

Q: Post your findings on the differences between short-run and long-run aggregate demand and between…

A: Short and long run aggregate demand are downward sloping. Short run aggregate supply is downward…

Q: Why aggregate demand curve slopes downwards? Why aggregate supply slopes upwards?

A: A demand curve shows the relationship between quantity demanded and price in a given market on a…

Q: What kind of change would happen to  aggregate demand, aggregate supply, and real GDP. if foreign…

A: Macroeconomics is important in policy making and understanding the growth of the GDP of the country.…

Q: A decrease in the price level accompanied by no change in the money wage rate leads to movement…

A: The short-run aggregate supply (SRAS) curve depicts the positive relationship between price and…

Q: What would happen to short- and long-run aggregate supply if unusually good weather led to bumper…

A: To determine the impacts on the short run aggregate supply and the long run aggregate supply if…

Q: There are three reasons the aggregate demand curve is downward sloping. What are they? Explain each…

A: Three reasons that show the Aggregate Demand curve is downward sloping: 1- Pigou's wealth effect. It…

Q: Which would most likely increase aggregate supply?  An increase in the prices of imported products…

A: The aggregate supply curve is the total supply of goods and services in an economy that is willing…

Q: Which of the following does not shift the aggregate supply curve? Changes to technology Increases in…

A: Aggregate demand and aggregate supply are the two most important variables in macroeconomy.…

Q: In a time of crisis where there is a pandemic, policymakers try to encourage economic activity by…

A: During pandemic situation , alomost every nation have been affected by the covid-19 and the…

Q: What effect would an increase in aggregate supply have on price levels and GDP?

A: The aggregate supply curve is used to show the relationship between the quantity supplied of real…

Q: One reason the aggregate demand curve is downward sloping is that a lower price level

A: Aggregate demand is the total quantity of demand for all finished products and services generated in…

Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…

A: Aggregate demand curve shows quantity demanded for final goods at different price level. The…

Q: What effects would each of the following have on aggregate demand or aggregate supply, other things…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Suppose the United States passes a law that requires large businesses to provide one year of paid…

A: Factors affecting aggregate supply curve:- 1) Cost of Raw material:- Change in cost of raw material…

Q: Which of the following policies does not shift the aggregate supply curve to the right?

A: (1) The aggregate supply (AS) curve depicts the total supply of goods and services at each price…

Q: What are three factors that help explain the slope of the aggregate demand curve? What is the most…

A: The slope of the Aggregate Demand curve is downward sloping. The three reasons include: 1-Pigou…

Q: Illustrate each of the following situations with a graph showing the Short-run Aggregate Supply…

A: The aggregate supply is the summation of all the individual supply curves in the economy. The…

Q: Differentiate long-run aggregate supply from short-run aggregate supply.

A: The aggregate supply refers to the total amount of all the goods, and services supplied by all the…

Q: Using a well-labelled diagram, explain what happens to Aggregate demand of a country like Kenya when…

A: When price of petroleum products increases,aggregate demand would decrease.

Q: What change does recession has on the price and output level when the change in aggregate demand is…

A: Recession: It is an economic situation or a phase of the business cycle in which the economy…

Q: Which of the following will shift the Aggregate Demand curve to the left? (Select All that Apply)…

A: Aggregate demand is the sum of consumption, investment, government spending, and net exports.  i.e.,…

Q: Is aggregate demand a specific dollar amount?. For example would it be correct to say aggregate…

A: Aggregate Demand -:                                      It refers to the total quantity of goods…

Q: The following table lists several determinants of aggregate demand. Complete the table by indicating…

A: Aggregate demand is the total demand for final goods and services produced in an economy in a given…

Q: Is the following statement TRUE or FALSE? Please provide reason for the answer. The aggregate…

A: Aggregate supply is defined as the total amount of supply of goods and services in the economy in a…

Q: Which of the following is likely to occur if an increase in legal immigrants significantly reduces…

A: Immigration refers to the international movement of people to a country of which they are not…

Q: The horizontal axis of the aggregate demand and aggregate supply model measures the overall The…

A: Aggregate demand and aggregate supply curve shows the market equilibrium. The horizontal axis…

Q: Which of the following will most likely cause a rightward shift in the aggregate supply curve? An…

A: The aggregate supply curve is the total of all the supply curves of the entire economy.

Q: Which of the following best explains a decrease in real GDP and an increase in the price level? a)…

A: The aggregate supply curve shows different quantities are supplied at different price levels. It…

Q: Suppose that the government reduces spending on highway construction by $10 billion . Which way does…

A: Crowding out effect:It refers to the situation that occurs when there is a rise in government…

Q: Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph…

A: Answer: According to the above figure, if the supply curve shifts from AS to AS2 it means the firms…

Q: Draw the aggregate demand and aggregate supply curves and explain the following macroeconomics…

A: The economies around the globe have various entities, which operates with the motive of maximizing…

Q: List 2 reasons why aggregate demand curve (AD) slopes downward.

A: The aggregate demand is the summation of the demand from all the economic agents such as the…