If aggregate demand decreases and aggregate supply increases, the price level ________.
Ans.The price level will decrease.
AD decreases means the curve shifts to the left.
AS increases means the curve shifts to the right.
Quantity remains the same and price level reduces.
-----------------------------------------------------------------------------------------------------
If aggregate demand decreases and aggregate supply increases, the price level ________.
When taxes are cut, aggregate demand ________ and aggregate supply ________. A. decreases; decreases B. increases; does not change C. decreases; increases D. increases; increases E. increases; decreases e
QUESTION 8 In Productovia, aggregate demand increases and aggregate supply decreases. Based on the shifts in these two curves, what is a likely outcome? deflation higher taxes lower imports inflation QUESTIONS As GDP decreases, tax revenues Causing to aggregate demand deeline testraint decline stimulus increase restraint increase stimulus
1. In addition to the price level, what does the aggregate demand and aggregate supply model focus on? a. real GDP b. nominal GDP c. the real interest rate d. stock prices 2. Which statement best characterizes the long-run aggregate-supply curve? a. It is horizontal. b. It shows a positive relationship between price level and output. c. It demonstrates the importance of money in the economy....
When the price level increases, aggregate planned expenditure decreases, which leads to A. a rightward shift of the aggregate demand curve. B. a leftward shift of the aggregate demand curve. C. an upward movement along the aggregate demand curve. D. a downward movement along the aggregate demand curve. E. neither a movement along nor a shift of the aggregate demand curve.
If the supply (level) of RNs decreases, and the level of demand for healthcare increases, what will happen to the equilibrium price and quantity? a. Price will increase and quantity will increase. b. Price will increase and quantity will decrease. c. Price will increase and quantity will be indeterminate d. Price will be indeterminate and quantity will decrease. e. None of the above.
Part 4: Complete the following chart by stating whether each measure increases or decreases: Shift Price Level Real GDP Unemployment Rate Aggregate Demand increases Aggregate Demand decreases Aggregate Supply increases Aggregate Supply decreases
If demand decreases and supply increases, what happens to price and market quantity? Price definitely decreases while market quantity definitely increases due to the supply increase. The demand decrease counteracts the supply increase leading to no change in either price or market quantity. Market quantity definitely decreases while the impact on price is ambiguous. Price definitely decreases while the impact on market quantity is ambiguous. « Previous Next → 27 MacBook Air
The data below represents the price level, the aggregate demand, and the aggregate supply data for an economy. Use the data points to plot an aggregate demand curve and aggregate supply curve for this economy. Each curve is labeled as AS (Aggregate Supply) or AD (Aggregate Demand) and each point is labeled as a, b, or c from the table headings. 60 Price Level Aggregate Supply (AS) Aggregate Demand (AD) 20 $800 $1,400 $1,000 $1,000 100 $1,200 $600 Provide your...
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for the United States at an initial long-run macroeconomic equilibrium Price level] (P) LRAS SRAS Real GDP Consider a situation in which two things happen simultaneously: there is a deterioration of institutions, and the federal government massively increases spending. Which of the graphs below illustrates the shifts in this model given this situation? Price level Price level (P) (P) URAS LRAS, LRAS SRAS SRAS SRAS...
The demand for money ________ when the ________. Select one: a. increases; supply of money decreases b. increases; price level increases c. decreases; price level increases d. remains constant; price level increases e. increases; nominal interest rate increases