What varies along the aggregate demand curve? Expectations Interest rates The pr
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What varies along the aggregate demand curve? Expectations Interest rates The price level Consumer preferences None of the above If the price of oil to businesses goes up, The aggregate demand curve will shift out The aggregate demand curve will shift in The aggregate supply curve will shift out The aggregate supply curve will shift in None of the above The short-run aggregate supply curve is positively sloped. negatively sloped. vertical. concave Unknown, this was not discussed in class. Keynes argued that business cycles were caused by shifts in aggregate supply. shifts in aggregate demand. mistakes in government fiscal & monetary policies. shocks to the national economy created by global economic imbalances. None of the above. The multiplier process explains The change in real GDP that results from a change in autonomous spending. The change in induced spending that results from a change in autonomous spending. Why total spending changes more than an initial change in autonomous spending. Short-run economic growth All of the aboveExplanation / Answer
1. (C) The price level varies along the demand curve. If the price price level increases.
The changing price level in turn changes the aggreagate expenditures and leads to amovement along the aggregate demand curve, restoring the equilibrium. Thus the PRICE LEVEL change causes the movement along the AGGREGATE DEMAND CURVE.
2. (b) If th eprice of oil to business goes up the aggregate demand curve will shift in.
As the price goes up export will be less and demand will less which in turn causes the inward shift of the aggreagate demand curve.
3. (a) The short run aggregate supply curve is positively sloped.
In short run the aggregate supply curve reacts to the price level, which means it is upward sloping or positively sloped . If the price level increases the quantity of supply also increases.
4.(b). According to Keynes shifts in aggregate demands causes the the business cycle.
5. (d) The multiplier process id a sum of all the factors given here.
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