Question

THE ECONOMY TOMORROW: Predict the impact on aggregate demand if a. Unemployment claims rise. Aggregate demand would decrease

0 0
Add a comment Improve this question Transcribed image text
Answer #1

a) If the unemployment claim rises then people are losing their jobs and their income will fall this will reduce the aggregate demand in the market.

b) If the stock price increases the income of the people in the market will be rising and that will lead to a higher demand in the market.

c) this will increase the investment in the market and that will increase the aggregate demand in the market.

Add a comment
Know the answer?
Add Answer to:
THE ECONOMY TOMORROW: Predict the impact on aggregate demand if a. Unemployment claims rise. Aggregate demand...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 3.18 A massive decrease in aggregate demand plunges the U.S. economy into a recession and unemployment...

    3.18 A massive decrease in aggregate demand plunges the U.S. economy into a recession and unemployment rates soar to 10%. According to the classical model of macroeconomic equilibrium the economy will stagnate in a recession unless measures are taken to increase aggregate demand nominal wages will decline increasing aggregate supply until full employment is restored nominal wages will remain fixed the aggregate supply curves will shift inward making the recession worse the price level will not decline Key Concepts: Classical...

  • An increase in aggregate demand would cause foreign investment to rise. unemployment to rise. the price...

    An increase in aggregate demand would cause foreign investment to rise. unemployment to rise. the price levels to rise. The aggregate demand represents total spending on ________. a nation’s total budget a nation’s domestic output of goods and services the total supply of domestic and imported goods Which component of aggregate demand would initially be affected by a change in exchange rates? consumption net exports government spending

  • When the aggregate demand curve and the short-run aggregate supply curve intersect, a) the long-run aggregate...

    When the aggregate demand curve and the short-run aggregate supply curve intersect, a) the long-run aggregate supply curve must also intersect at the same point. Ob) the economy must experience higher output than the natural level of output. o c) the economy must experience lower output than the natural level of output. o d) the economy is in short-run macroeconomic equilibrium. In a small economy in 2016, aggregate expenditure was $900 million while GDP that year was $750 million. Which...

  • An increase in the price level will A) shift the aggregate demand curve to the left.

     7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along the aggregate demand curve. D) move the economy down along the aggregate demand curve. 8) Expansionary monetary policy involves A) reducing money supply and lowering taxes B) increasing money supply to decrease interest rate C) increasing government spending and cutting money supply D) increasing the interest rate and increasing taxes 9) Long-run macroeconomic equilibrium occurs when A) aggregate demand...

  • Suppose a decrease in aggregate demand shifts the economy from equilibrium to P4 and Y1. LRAS...

    Suppose a decrease in aggregate demand shifts the economy from equilibrium to P4 and Y1. LRAS Price Level AD Y Y* Real GDP a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects. Gross Investment Increases as capital units become fully utilized. Imports decrease due to Increased foreign prices b. A decrease in aggregate demand is of policy concern due to the increase in the...

  • Consider an economy with the following aggregate demand (AD) and aggregate supply (AS) schedules. These schedules...

    Consider an economy with the following aggregate demand (AD) and aggregate supply (AS) schedules. These schedules reflect the fact that, prior to the period we’re examining, decision makers entered into contracts and made choices anticipating that the price level would be P105. AD105 Price Level SRAS105 (trillion dollars) (trillion dollars) 5.1 95 3.5 4.9 100 3.8 4.7 105 4.2 4.5 110 4.5 4.3 115 4.8 The quantity of GDP that will be produced will be _____ trillion and the price...

  • Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y. Price Level ................

    Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y. Price Level ............. Y, Y Real GDP a. Which of the following events would likely chuse the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects Gross investment increases as capital units become fully utilized. Imports decrease due to increased foreign prices. a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls...

  • In an economy where the money supply and aggregate demand have been decreased by the Central...

    In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...

  • Draw a basic aggregate demand and aggregate supply graph (with LRAS constant) that shows the economy...

    Draw a basic aggregate demand and aggregate supply graph (with LRAS constant) that shows the economy in long-run equilibrium. a. Assume that there is a large increase in demand for U.S. exports. Show the resulting short-run equilibrium on your graph. In this short-run equilibrium, is the unemployment rate likely to be higher or lower than it was before the increase in exports? Briefly explain. Explain how the economy adjusts back to long-run equilibrium. When the economy has adjusted back to...

  • QUESTION 6 The aggregate demand curve would shift to the right as a result of a...

    QUESTION 6 The aggregate demand curve would shift to the right as a result of a drop in the foreign exchange value of the dollar. a decrease in the amount of money in circulation. a drop in the price level. tax increases. QUESTION 16 According to Keynesian economics using the modern short-run aggregate supply curve, if there are unutilized resources in the economy and the aggregate demand decreases real GDP will fall and price level will fall. real GDP will...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT