Discuss one reason for the downward sloping aggregate demand curve.

Q: Why unemployment results when Aggregate Demand is lesser than Aggregate Supply in the economy?

A: Aggregate demand refers to the total demand for the finished goods and services in an economy—the…

Q: Show and explain the effects of an increase in aggregate demand in the long-run and short-run by…

A: AS/AD model depicts the the total supply and total demand interaction at macro level. Aggregate…

Q: What is the long run aggregate supply curve

A: An aggregate supply curve shows the relationship between the output produced in an economy and the…

Q: Why does the effect of a given increase in aggregate demand have a larger effect on real output in…

A: Answer: Introduction: In the short run, the output can be increased by employing more laborers. In…

Q: Discuss the various factors affect aggregate supply curve shift.

A: The aggregate supply curve is one of the most determinant of the determination of the output or the…

Q: What happens to the output and price level if aggregate demand and aggregate supply curves shift in…

A: The aggregate demand and aggregate supply curve is a model that shows what decides total supply or…

Q: One of your classmates is convinced that the actual amount of output that corresponds to the…

A: The fixed LRAS corresponds to the the natural level of output, which the economy can produce at…

Q: How does each of the following infrastructure items affect aggregate supply?   courts and prisons.

A: Aggregate supply is the total quantity of goods and services produced in an economy.

Q: Why is an economy not in equillibrium when aggregate demand is not equal to aggregate supply?

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: What factors affect aggregate demand?

A: Aggregate demand sums the desired quantity demanded of final commodities and services by different…

Q: What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the…

A:

Q: Why can't an economy generate its own aggregate demand when needed?

A: A system for creating, distributing, and consuming goods is referred to as an economy. The producers…

Q: What causes the aggregate supply curve to have an upward slope in the short run, but a vertical…

A: Total supply of goods and services produced at a given price in a given period of time within an…

Q: Why does the aggregate demand curve slope downward?

A: Aggregate demand curve shows the summation of consumption spending, investment spending, government…

Q: What are the major factors causing a shift in aggregate demand (inward or outward)?

A: Aggregate demand refers to the total demand for goods and services in the economy. AD = C + I + G +…

Q: Illustrate each of the following situations with a graph showing aggregate supply and aggregate…

A: Case 1: Increase in government spending while money supply held by the Fed is constant. The constant…

Q: List the three reasons for why the aggregate-demand curve slopes downward. Explain Answer

A: At each price level, an aggregate demand curve depicts total spending on domestic goods and…

Q: Briefly explain what effect and why, a slowdown in Technological progress would have on the…

A: A slow down in technological progress would affect the aggregate supply as it is directly related to…

Q: A movement up a given aggregate demand curve is the result of

A: Demand is regarded as an economic principle which refers to a consumers desire to buy goods and…

Q: Explain why the Aggregate Demand curve is downward sloping

A: Aggregate demand curve is demand for finished products (goods and services) in an economy at a…

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: the factors that can increase short-run aggregate supply?

A: Aggregate supply- It is the total supply of goods and services by an economy.Short-run aggregate…

Q: When does a Short-Run Aggregate Supply curve shift upwards and why?

A: The Short Run Aggregate Supply curve allows us to capture how all the firms in the market respond to…

Q: What relationship does the short-run aggregate supply curve represent?

A:

Q: What are the major components of aggregate demand? How these components impact the Aggregate Demand?…

A: The total demand for finished products and services in an economy is referred to as aggregate…

Q: What are the major factors that determine investment, and what impact does each have on aggregate…

A: Investment refers to the economic activity under which households and firms make an agreement or…

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: What effects would  increase in aggregate supply have on price levels and GDP?

A: In economics, the aggregate supply level is a concept which measures the level of total output or…

Q: What are the major factors that will affect short-run aggregate supply and long-run aggregate…

A: The short-run aggregate supply shifts in relevance changes in index and production. The equation…

Q: Draw the aggregate demand model and show how government spending impacts the model. Please label the…

A: Government spending has a direct relationship with the level of output. An increase in government…

Q: Graphically illustrate the long-run aggregate supply curve. Explain

A: In the long run, the aggregate supply curve is assumed to be vertical that is it does not change…

Q: Describe the concept of aggregate demand and aggregate supply?

A: Aggregate demand is the measure of the overall quantity of demand for all finished goods and…

Q: If the economy’s labor force is increasing and also becoming more productive, what will happen to…

A: The whole supply of goods and services produced within an economy at a certain overall price in a…

Q: Use an aggregate demand and aggregate supply framework to illustrate why the existence of stickiness…

A: Answer- Need to find- Use an aggregate demand and aggregate supply framework to illustrate why the…

Q: What is the short run aggregate supply curve

A: The short run aggregate supply curve is an upward loping curve, because quantity supplied is…

Q: Why does the economy's aggregate demand curve have a negative slope?

A: Three reasons that show the Aggregate Demand curve is downward sloping (or have a negative slope):…