Last week, Jerome Powell, the chair of the Federal Reserve, commented that the economy will face a slow recovery since the recession started in February, 2020.  Pessimistic projections about the future health of our economy may lead to   Question 39 options:   a)  an increase in aggregate demand   b)  a decrease in aggregate demand   c)  an increase in short-run aggregate supply   d)  a decrease in short-run aggregate supply

Q: Explain why the aggregate demand curve slopes downwardand the short-run aggregate supply curve…

A: Why the aggregate demand curve slopes downward? The aggregate demand (AD) curve slopes downward…

Q: Solve the attachment.

A: The long-run aggregate supply represents the potential output an economy is capable of achieving…

Q: Can I get some help understanding these questions?

A: Aggregate demand is defined as the total demand for all the final goods and services produced in an…

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

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

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: The federal government tends to increase their spending to get the economy out of recession. Explain…

A: Recession refers to the situation of slowdown in economic activities. During the recession, the…

Q: What effects would each of the following have on aggregate demand or aggregate supply? In each case…

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Q: Starting from long run equilibrium,  use the basic aggregate demand and aggregate supply diagram to…

A: Aggregate demand shows the total expenditure done in the economy. Aggregate supply curve shows the…

Q: Explain whether each of the following events shifts the short-run aggregate supply curve, the…

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

Q: In one or two sentences, explain why Keynesian economists believe that increasing the money supply…

A: According to Keynesian economists, aggregate demand is the sum of consumer spending, investment,…

Q: Explain whether each of the following events will increase, decrease, or have no effect on long run…

A: During long-run time intervals every factor can be changed and the factors in the long-run time…

Q: aggregate demand will increase and real GDP wil increase in the short run. aggregate supply will…

A: Aggregate Demand = Consumption+Investment+Government Expenditure+(Exports-Imports) This is the same…

Q: During the pandemic of 2020, stimulus checks were sent to qualifying individuals. Some people chose…

A: Stimulus checks might be sent to individuals in order to induce them to spend more, and thus…

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: 8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the…

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Q: What role do imports play in aggregate demand? Under which conditions will changes in imports expand…

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Q: Explain what will happen as a result of the following events. In each case, draw an aggregate demand…

A: a) The economy is in a recession. An increase in government purchase will shift the aggregate demand…

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: E4 In the fall of 2021, the United States enacted a $1.2 trillion infrastructure bill that provided…

A: In the aggregate demand-aggregate supply model, the equilibrium occurs where the aggregate supply…

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: For each of the scenarios, please decide whether there will be an increase or decrease in short-run…

A: 1a: Since there is a the cost of health insurance is increases, it leads to reduces the demand and…

Q: Explain what will happen as a result of the following events. In each case, draw an aggregate demand…

A: The aggregate demand curve is downward sloping which shows the negative relationship between price…

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: n due to the poor economy, government officials have decided to cut taxes. They are considering two…

A: Tax cuts are considered to be reductions to the amount of money of taxpayers which in turn goes…

Q: From March 2009 to 2013, the U.S. stock market more than doubled in value. How might this have…

A: When the U.S stock market more than doubled in value from March 2009 to 2013, this leads to more…

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

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

Q: In March 2020, as the Covid-19 recession  hit the world, consumers became pessimistic about their…

A: The gross domestic product(GDP) is defined as the market value of all the final commodities(goods…

Q: Explain the likely effects of a U.S. boom on the demand for Canadian exports. What would be the…

A: Depreciation/devaluation -:     It refers to fall in value of exchange rate – exchange rate…

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: Classify each description according to whether or not it can cause aggregate demand to increase.…

A: Aggregate demand   = C + I + G + (X-M), C= consumption, I= Investment, G= Government spending, (X-M)…

Q: Imagine that in the current year the economy is in long-run equilibrium. Then the federal government…

A: Government purchases is a component of aggregate demand and decrease in goverment purchases results…

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: During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than…

A: The equilibrium is set up where the aggregate demand and aggregate supply are equal. Change in the…

Q: n the short run, a favorable shift in aggregate supply would move the economy from: A to B D to A B…

A: Answer to the question is as follows :

Q: What factors shift the short-run aggregate supply curve?Do any of these factors shift the long-run…

A: Aggregate supply refers to the total supply of services and goods that is planned to be supplied in…

Q: In your own words, explain why aggregate demand is inversely related to the price level. Why does…

A: AD curve is downward sloping because of three effects: Pigou’s wealth effect: Since value of…

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…