Question

Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand increases if fiscal policy government expenditure. SA O A. decrease; increases O B. increase; decreases OC. decrease, decreases OD. increase: increases Aggregate demand increases if fiscal policy transfer payments O A. decreases; increases OB. increases; increases O C. increases; decreases OD. decreases, decreases Aggregate demand increases if monetary policy the quantity of money and interest rates Click to select your answer.

Answer 1

a) "D"

Increase in the future income and increase in the government policy both will increase the aggregate demand in the market.

b) "A"

If the taxes decrease and there is an increase in the transfer payment will increase the aggregate demand in the market.

c) "C"

if monetary policy increases the quantity of money and decrease the interest rate the aggregate demand will increase the answer is "C".

d) "B"

If the exchange rate decrease and the foreign income increases then the aggregate demand will increase.

e) "B"

When they equal Long run aggregate supply curve.