how a decrease in government spending on infrastructure affect the 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: what are the aggregate demand consequences of Hurricane Katrinaor a war in the Middle East?

A: Aggregate demand: The term aggregate demand refers to the sum total of all individual demands.…

Q: Suppose that consumers become pessimistic about the future health of the economy. What will happen…

A: The Agrregate Demand plays an important role in framing the  correct policy for the economy. To…

Q: If C = 300 billion and I = 150 billion find the aggregate demand in a two sector economy

A:

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: How was the aggregate supply curve different from the supply curve for single good like pizza?

A: Aggregate supply curve shows the response of the aggregate supply to the fluctuations in the price…

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: s it better to concentrate on aggregate demand or aggregate supply in a recession?

A: A recession is a phase of contraction of the business cycle when there is a general fall in economic…

Q: One supply-side measure introduced by the Reagan administration was a cut in income tax rates. Use…

A: Due to decrease in tax rates, purchasing capacity increases and resource owners can hire more labor…

Q: How does the policy rate hitting a floor of zero lead toan upward-sloping aggregate demand curve?

A: The policy rate hitting a floor of zero leads to an upward-sloping aggregate demand curve due to the…

Q: How does it help to explain the downward slope of the aggregate demand cure?

A: Aggregate demand refers to a total value of finished goods and services demanded in an economy…

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: 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: How will a change in the money supply affect aggregate demand?

A: Aggregate demand (AD) shows the relationship between total spending and the price level. Total…

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: 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: How fiscal policy influences aggregate demand?

A: Aggregate demand refers to the overall demand for commodities and services in an economy during a…

Q: How does an increase in aggregate demand affect output, unemployment, and the price level in the…

A: AD(aggregate demand) curve, shifts to the right(increases) when its components rise. The components…

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: 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: From the perspective of someone using aggregate-demand and aggregate supply analysis, what is the…

A: Full employment is the situation where all the resources are fully utilized.

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: Aggregate supply grows over time because of growing consumer and government spending.  True or…

A: Aggregate supply(AS) shows a direct-relationship between the price(P) and the quantity(Q)…

Q: How do Classical and Keynesian economists differ in their view of the aggregate supply curve?

A: Classical school of economics is based on free market. They believes that market forces works…

Q: Using the Equation of Exchange, argue how increasing government spending can help the…

A: Equation of Exchange written as :MV=PTM is Money Supply V is Transaction velocity of circulation P…

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: What effect will a successful supply-side policy have on the aggregate demand curve?     A)…

A: Supply-side approaches are government endeavors to expand efficiency and increment proficiency in…

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):…

Q: A stimulative monetary or fiscal action should increase aggregate demand. What factors may limit the…

A: Answer -

Q: Using the AD/AS model construct two graphs that show how a recession can occur? Explain how…

A: A recession is a time of declining economic execution across a whole economy that goes on for a long…

Q: TRUE/FALSE According to our discussion of supply side economics, there are positive aggregate demand…

A: The supply-side theory of economic growth is an economic theory that states that increasing the…