Question

only 14, 16 and 18 is needed

The Aggri that is the aggr by is the short ly is the long WHAT IS THE The aggregate su zinionship betwe de relationship Section 8.4 14. Describe what the effect on aggregate demand would be, other things being equal, i a. exports increase b. both imports and exports decrease. C. consumption decreases. d. investment increases. e investment decreases and government purchases increase. f. the price level increases. g the price level decreases. 15. Suppose retailers like Canadian Tire and Walmart find that their inventories are being depleted. What type of change in aggregate demand (a rightward or leftward shift) could be seen as responsible? What are the likely consequences for output and invest- ment of this type of change in aggregate demand? 16. Which of the following both decreases consumption and shifts the aggregate demand curve to the left? a. an increase in financial wealth b. an increase in personal income taxes c. an increase in the price level d. a decrease in interest rates 17. Predict how each of the following would impact investment expenditures. a. Inventory levels are depleted. b. Banks scrutinize borrower credit more carefully and interest rates rise. c. Profit rates have decreased over the past few quarters. d. Factories operate at 60 percent capacity, down from 80 percent. 18. Identify which expenditure category each of the following will directly impact, and also in which direction the Canadian aggregate demand curve will shift as a result. a. Income increases abroad. b. There is a decrease in interest rates. c. Parliament passes permanent tax cuts for both households and businesses. d. Firms become more optimistic about the outlook for the economy. c. Stocks traded on the Toronto Stock Exchange lose 40 percent of their value in one month's time. rices that supp 10- short short-ran aggre and the price le for example, spregate supe led when out WHY IS TH POSITIVE In the short utpat, and producers е оно оо The Pro 19. Explain how the most recent recession in the United States affected aggregate emand in the Canadian economy.

Answer 1

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