In the model of aggregate demand and aggregate supply, the quantity of _____ is on the horizontal axis, and the _____ is on the vertical axis. a) output; price level b) money; price level c)output ; interest rate d)money;interest rate
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In the model of aggregate demand and
a) output; price level
b) money; price level
c)output ; interest rate
d)money;interest rate
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- The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.1) Define aggregate demand and aggregate supply. 2) Give three reasons why the aggregate demand curve slopes downward. 3) Give three reasons why the aggregate supply curve slopes upwards.Assume an economy operates in the keynisian ( horizontal) ranges of its aggregate supply curve curve. For each of the following changes in condition, state the direction of the effect on : 1. Aggregate demand, 2 aggregate supply 3. Price level and 4. Real gdp A decrease in government expenditure in infrastructure A severe recession occurs in a country, which has been a major importer of the nations exports. The federal government reduces business taxes. The central bank increases the cash interest rate
- Which of the following is not a component of the aggregate demand curve?a.Government spending(G)b.Investment(I)c.Consumption(C)d.Net Exports(X-M)e.SavingUsing the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia. a)Malaysian higher education system has produced highly skilled employees.Evaluate the following statements using relevant diagrams and provide detailed explanations. The statements describe events that might shift aggregate demand (AD), aggregate supply (AS), both or neither. Clearly label your diagrams. A recent economic report suggests that consumer confidence has increased Apple Inc. has announced a 50% discount on its new generation iPad devices for university students After a prolonged acceleration in economic activity, the government raises the rate of personal income tax. A continuing economic expansion has drawn in many working age people (and their families)from neighbouring countries in search of jobs and better lives
- What does aggregate demand include? the demand for intermediate goods and final goods the demand for final goods and services the demand for investment, including stocks, bonds, and gold the demand for all monetary and nonmonetary transactionsWhich of the following statements best describes the aggregate supply curve? A) The aggregate supply curve represents the relationship between the price level and the total output or real GDP in the macroeconomy. B) The aggregate supply curve represents the relationship between the inflation rate and the total output or real GDP in the macroeconomy. C) The aggregate supply curve represents the relationship between the inflation rate and the total demand or real GDP in the macroeconomy. D) The aggregate supply curve represents the relationship between the price level and the potential output or GDP in the macroeconomy.Evaluate the following statements using relevant diagrams and provide detailedexplanations. The statements describe events that might shift aggregate demand (AD),aggregate supply (AS), both or neither. Clearly label your diagrams. A) A recent economic report suggests that consumer confidence has increased.B) Apple Inc. has announced a 50% discount on its new generation iPad devices foruniversity students.C) After a prolonged acceleration in economic activity, the government raises the rateof personal income tax.D) A continuing economic expansion has drawn in many working age people (andtheir families) from neighbouring countries in search of jobs and better lives.
- Which of the following is not a component of the aggregate demand curve? a.Government spending(G) b. Investment (I) c. Consumption (C) d. net exports (X-M) e. SavingsWhat effects would each of the following have on aggregate demand or aggregate supply? Justify your answer. In each case use a diagram to show the expected effects on the equilibrium price level and real output level in the economy. Assume that all other things remain constant and prices are inflexible downward. (a) A reduction in interest rates at each price level (b) A sizable increase in labor productivity. (c) The nation’s currency appreciates against its major trading partners .Aggregate demand is the total quantity of output A)consumers actually buy. B) producers are able and willing to supply at different price levels. C) demanded if the economy is in equilibrium. D) demanded at different price levels in a given time period.
