List any five factors that can shift the aggregate demand (AD) curve to the right.

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: The federal government buys $20 million worth of computers from Dell. If the MPC is 0.60, what will…

A: Given  MPC=0.60 Federal government buys $20 million worth of computers Therefore government…

Q: The aggregate demand curve slopes downward because when the price level is lower, people can afford…

A: The aggregate demand curve slope downwards as the price level and the aggregate demand has a…

Q: Explain how the aggregate demand curve is derived.

A: The aggregate demand shows the relationship between price level and quantity demanded. That is,…

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: Explain fully why the AD curve has a negative slope.

A: Demand for a good is defined as the amount of that good that consumers are willing and able to buy…

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: An increase in consumer confidence would cause the AD curve to:

A: The Law of demand refers to the inverse or negative relationship between the quantity demanded of a…

Q: What factors affect aggregate demand?

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

Q: Which of the following will cause a decrease in aggregate demand? A) Increase in government…

A: Income taxes affect the consumption component of aggregate demand. a rise in income taxes reduces…

Q: Explain with example how a reduction in taxes without a reduction in government spending may have no…

A: The economies around the world tend to focus on their growth, stability in the financial, and…

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: 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: Which of the following would shift the aggregate demand curve to the left?

A: Change in consumption, investment, government expenditure and net export will cause shifts in…

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: How would a dramatic increase in the value of the stock market shift the AD curve? What effect would…

A: An expansion in the value of the stock market would cause people to feel richer and in this way,…

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: 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: In a binding situation, changes in government .spending do not shift the AD curve :Select one True…

A: In a binding situation, the aggregate demand (AD) is vertical and the interest rate is always zero.…

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: Which of the following is a major influence on Aggregate Supply? Select one: a. The advice of…

A: Aggregate supply (AS) is the total supply of the goods and services available into the market from…

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: How would the level of aggregate demand be affected by a rise in the interest rate in the Keynesian…

A: If the level of interest rate rises,then aggregate demand would decrease.

Q: In the following table, determine how each event affects the position of the aggregate demand curve.…

A: Aggregate demand (AD) is the total combined demand for a product or a service in an economy. Any…

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: what is being illustarted in a shift in aggregate demand from AD0 to AD2?

A: The aggregate demand curve is a representation of the total level of demand for output in an…

Q: Use the following graph to answer the next question.     In the figure, AD1 and AS1 represent the…

A: It shows expansion because actual real GDP is greater than potential real GDP. When AD1 rises to…

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: 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: Explain why the Aggregate Supply curve is upward sloping

A: In Macroeconomics, the concept of aggregate supply(AS) and aggregate demand(AD) is used to ascertain…

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: According to aggregate supply and aggregate demand analysis, what happens to P (price level) and Q…

A: Equilibrium in the market occurs at the intersection of aggregate demand and aggregate supply curves…

Q: Which of the following would not shift the aggregate demand curve to the left? Group of answer…

A: The aggregate demand (AD) curve is a line exhibiting the relationship between total units demanded…