To determine the price level and aggregate output, the aggregate demand and aggregate supply must

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: Distinguish between the short-run aggregate supply curve and the long-run aggregate supply curve.

A: The aggregate supply is the summation of all the goods and services produced and supplied by all the…

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: What is aggregate demand and supply?

A: In economics, output is the amount of products and services produced during a given period of time.…

Q: Government Spending and How it Affects Aggregate Demand

A: Aggregate demand (AD) is the overall desire for a nation's finite resources from domestic and…

Q: Which of the following best defines aggregate demand? It is the total amount spent by all consumers,…

A: National income refers to the total amount of money earned within a nation.

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: Draw the Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply, and explain…

A: Aggregate demand: It is the sum total of demand for all the goods and services that are produced in…

Q: Which of the following is not a component of the aggregate demand curve? a.Government spending(G) b.…

A: The aggregate demand (AD) shows the negative relationship between the real gross domestic product…

Q: How does each of the following infrastructure items affect aggregate supply?  (a) highways, (b)…

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

Q: Which of the following is not a component of aggregate demand? A. Consumption B. Net Exports C.…

A: Component of aggregate demand: The four-component of aggregate demand can be written as follows:

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: Which of the following shifts aggregate supply to the right?   a. a decline in the price of…

A: The model of AD-AS describes the factors that determine the total demand and total supply in the…

Q: The following table gives the aggregate demand and aggregate supply schedules in January 2016 for a…

A: Aggregate supply: It refers to the total level of output in an economy. The increase in the level of…

Q: what are the four main components of aggregate demand? which is the largest? which is the smallest?

A: Aggregate demand alludes to the demand for the nation's (GDP) and the proportion of demand for…

Q: Economist A believes that changes in aggregate demand affect only the price level, and economist B…

A: Economist A believes that changes in aggregate demand only affects the only price level.  Economist…

Q: Based on the figure, which of the following would cause the aggregate demand curve to shift from AD1…

A: Aggregate demand shows an inverse relationship between price level and real GDP. It is a downward…

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 is not a component of the aggregate demand curve?a.Government…

A: Aggregate demand is the total value of goods and services produced in the economy in a given period…

Q: a.What happens to the aggregate demand? Describe your answer. b.What happens to the level of output?…

A: The aggregate demand curve shows the amount of goods and services that the economy is willing and…

Q: What effect would an increase in aggregate demand have on price level and GDP?

A: Answer: Aggregate demand: It refers to the total demand for final goods and services in an economy…

Q: On the following graph, plot the aggregate demand curve that results from varying the price level…

A: The aggregate demand curve is a curve that represents the sum of the quantity of all goods and…

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

A: Gross domestic product refers to the total amount of all the goods, and services produced in an…

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: In the model of aggregate demand and aggregate supply, the quantity of _____ is on the horizontal…

A: Net exports signifies the net foreign demand (that is foreign demand minus domestic demand)  for…

Q: Suppose that the election of a popular presidential candidate suddenly increases people’s confidence…

A: The demand and supply are determining the price level in the economy. The demand comes from all the…

Q: Using the aggregate demand and supply model show how a government can manage aggregate demand.

A: Different combinations of price and output are shown by Aggregate demand when the money market and…

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: Create a graph for a short-run aggregate supply curve. Use the variable ‘Price Level’ for the…

A: The supply curve represents graphically the supply schedule and it illustrates when there is an…

Q: In the model of aggregate demand and aggregate supply, the quantity of _____ is on the horizontal…

A: Answer to the question is as follows :

Q: Are there many short-run aggregate supply curves and long-run aggregate supply curves? Why or Why…

A: The short run aggregate supply curves would be an upward sloping line which shows the increase in…

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 is included in U.S. aggregate demand? a) all spending by consumers, firms, the government, and…

A: The curve that depicts quantities of goods and services being produced in an economy at various…

Q: Draw the aggregate demand, short run aggregate supply and the long run aggregate supply.

A: Aggregate demand: It represents the total of all consumption-related demands for goods and services…

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

A: Aggregate demand is the total demand for final services and goods at a given period and price level.…

Q: Please Define Aggregate supply in no more than 3 lines

A: # Aggregate supply is one of the most important aspect of the macro economics which deals with the…

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: The Great Depression, according to John Maynard Keynes, was caused by people hoarding cash under…

A: A prolonged, long-term decline in economic activity in one or more economies is referred to as an…

Q: State the main components of the aggregate demand in the economy

A: According to the given question Aggregate demand is initially known as the total amount of the…

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

A: Aggregate demand , which signifies the planned demand by economic agents like consumers, business…

Q: The equilibrium price level and the equilibrium level of real GDP are jointly determined by the…

A: Aggregate demand(AD) represents an inverse-relationship between the price(P) and the quantity(Q)…