When price falls, what happens? What happens to consumer surplus if the price of a good increases? When prices rise, what happens to income? If price rises, what happens to the demand for a product? What happens when supply increases and demand decreases?
When aggregate demand decreases, what happens to real GDP and unemployment? Suppose that the economy is experiencing a low inflation rate such that unemployment is above the natural rate. How does the economy return to the natural rate of unemployment if this lower...
When fewer items are available on the market, consumers are typically more willing to pay a higher price. Inflation is like that but on a grander scale. It happens when the aggregate demand exceeds the aggregate supply. From a monetary perspective, borrowing becomes attractive to consumers when ...
Decreases in aggregate demand can be caused by many different things, including changes in exchange rates, the distribution of...
What Happens to the Aggregate Demand Curve if Government Spending Decreases? Published on 1 Jan 2021 Changes in government spending affect aggregate demand to a degree that depends on the size of a number called the fiscal multiplier. If government spending decreases, then aggregate demand will shif...
Aggregate supply is the total amount of goods and services produced at a specific price point for a particular period. Short-term changes in aggregate supply are impacted most significantly by increases or decreases in demand. Long-term changes in aggregate supply are impacted most significantly by...
What's wrong - for one, the US economy is highly leveraged. The aggregate debt is increasing. What happens when even the interest can't be paid? I wouldn't worry too much about it. Canada will go bankrupt well before the US does, and when that happens your government will probably ...
As the demand for a particular good or service increases, the available supply decreases. When fewer items are available, consumers are willing to pay more to obtain the item—as outlined in the economic principle ofsupply and demand. The result is higher prices due to demand-pull inflation. ...
The government makes policy depending on how strong demand is in the country. If demand is low, then the government will try to increase it. That's when the nation's central bank uses expansionary monetary policy. It lowers interest rates and that decreases the cost of automobile, education...
An earthquake happens, and the replacement cost is found to be $500,000. But since you did not reach the coinsurance percentage, the ratio between the insurance limit ($900,000) and the required amount based on coinsurance percentage ($1.2 million) would be less than 1 (0.75). ...