How is equilibrium shown on a supply and demand graph? What is price elasticity of demand? In the short run, which of the following is not correct? a) Increasing the money supply increases the demand for goods and services. b) Increasing the money supply encourages firms to hire more ...
What are the factors that may cause a shift in the aggregate demand curve? In economics, what is the cause of a shift in the demand curve? What are the factors that shift the demand and supply curves? What are the major factors that would cause a shift in the demand curve of a commo...
Explain the short-run effect of a depreciation in the nominal exchange rate in the AD-AS model. What effect would a decrease in real interest rates paid by the consumer have on aggregate demand or aggregate supply? How does lowering interest r...
In the aggregate demand-aggregate dolly model in the short run, an increase in the money supply will lead to a(n): A. The decrease in both the price level and real GDP. B. Increase in real GDP and a decrease in the price level. C...
Normally, the long run aggregate supply curve is vertical. Answer and Explanation: A decrease in money supply will lead to a fall in the aggregate demand. On the graph below, this scenario is exhibited by the leftward chang...
Learn about the market demand curve definition. Find out about the importance of a market demand schedule and how to plot market demand on a graph. Related to this QuestionTrue or false? An increase in price will cause the demand curve to shift down a...
A decrease in exports means that a country is importing more than its exports. If demand for export decreases, it decreases the terms of trade of one...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer you...
If the government decreases taxes by $200 and people save 32% of each additional dollar earned, what will be the change in income (aggregate demand)? (Enter a positive number for an increase in income Explain the effects of the taxes fall by $40 billion on equilibrium income....
Describe how the immigration of workers affect labor supply, labor demand, the marginal product of labor, and the equilibrium wage? Explain how an increase in the productivity of labor will affect short-run aggregate supply. Is it possible for the number of employed workers to i...
What effect will it have in the long run? If the short-run Phillips curve shifts to the right, what will happen to the inflation rate necessary to keep the economy at full employment? How does the aggregate supply and demand graph work and how does this affect inflation and unemployment?