Suppose that the output Y increased by 200. This would increase the aggregate demand. The increase in the aggregate demand is one of four numbers below. Answer which one. 100, 200, 300, 400
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Q: aggregate demand
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- Which of the graphs represents the state of the economy before this pronouncement? Graph A Graph B True or False: President Roosevelt was trying to decrease aggregate supply. O True False10. Great Depression In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Graph A Graph B LRAS Aggregate Supply Aggregate Demand Price Level LRAS Quantity of Output Price Level Aggregate Supply Aggregate Demand Quantity of OutputA product's price and the quantity consumed both increased from one year to the next. Which of the following could have happened? A Demand decreased and supply remained constant. В Demand increased and supply remained constant. C Supply increased and demand remained constant. Supply decreased and demand remained constant. More
- Consider the following events:a. The price of cell phones goes down by 25 percent during a sale.b. You get a 25 percent raise at your job.Which event represents a shift in the demandcurve? Which represents a movement along thecurve? What is the difference?The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the price level is 140, and the quantity of output demanded is $300 billion. Moving down along the aggregate demand curve from point A to point B, the price level falls to 120, and the quantity of output demanded rises to $500 billion. 170 A O PRICE LEVEL 160 150 140 120 110 100 B AD CWhen due to rise in price of a good, total expenditure on the good also rises, then demand is _________
- Assume the aggregate demand for a good follows the law of demand (@gª < 0). Suppose the equilibrium in the market for др the good moves from Point A to Point B. Which statement below must be true? Р A Q A. B. C. Demand decreased and supply decreased Demand increased and supply decreased Demand decreased and supply increased D. Demand increased and supply increased E. Demand increased but we don't know if supply shifted F. Demand decreased but we don't know if supply shiftedWhat are the factors other than price that can shift aggregate demand curve interms of investment and consumption? Also explain graphically.Consider the following equations describing the components of demand and equilibriumin the goods market:C= 120 + 0.5 (Y - T)I = 40G=20T= 40 What is aggregate demand?
- 37.6% R Give Up? O Hint ment Score: Resources Chec on 5 of 15 <. In 2013, Prussia's aggregate demand curve was determined by the equation M +0= 4%. A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation M +6= 7%. Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph. Which of the factors could have resulted in the change in 14 aggregate demand seen between 2013 and 2014? 13 O an improvement in technology 12 11 an increase in imports 10 a decrease in oil prices 8. AD 2013 O higher consumer confidence 7. 5. -3 -2 -1 3. 6. 10 Real GDP growth rate F12 AD 2014 4. 6, 4. Inflation rateb. The equilibrium price of printers saw a large decrease in the past year, howeverthe equilibrium quantity remained unchanged. Three individuals provided anexplanation for the situation. Which explanation(s) could be correct? Explain.• Alex: Demand increased, but supply was totally inelastic.• Lance: Supply increased, but so did demand.• Ricardo: Supply decreased, but demand was totally inelastic C.The demand for pancakes is given by Qd = 40 – 5P and the supply is given byQs = 10P – 20, where P = price What is the equilibrium price and equilibriumquantity? i. The price for iPhones in Barbados has increased significantly. Demand for thecellular device has also increased. This is contrary to the law of demand. Doyou agree or disagree? Explain your answer. ii. Identify the flaw in this analysis: “If more Jamaicans become vegetarians, thedemand for beef will fall. The decrease in the demand for beef will cause theprice of beef to fall. The lower price, however, will then increase the…Explain why the following statements are false.a. “The aggregate-demand curve slopes downwardbecause it is the horizontal sum of the demandcurves for individual goods.”b. “The long-run aggregate-supply curve is verticalbecause economic forces do not affect long-runaggregate supply.”