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- 1) Define aggregate demand and aggregate supply. 2) Give three reasons why the aggregate demand curve slopes downward. 3) Give three reasons why the aggregate supply curve slopes upwards.4. Draw an ADAS graph at equilibrium. Suppose there is widespread fear of a recession. Which curve will shift? Draw the new equilibrium. Video HelpDiscuss scenarios by giving practical examples. What might shift the aggregate-supply curve to the left? Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.
- Using the concepts of aggregate demand and aggregate supply, explain how the economy reaches an equilibrium level of real GDP and price level.Evaluate the following statements using relevant diagrams and provide detailed explanations. The statements describe events that might shift aggregate demand (AD), aggregate supply (AS), both or neither. Clearly label your diagrams. A recent economic report suggests that consumer confidence has increased Apple Inc. has announced a 50% discount on its new generation iPad devices for university students After a prolonged acceleration in economic activity, the government raises the rate of personal income tax. A continuing economic expansion has drawn in many working age people (and their families)from neighbouring countries in search of jobs and better livesExplain the three reasons the aggregate-demand curve slopes downward. Give an example of an event that would shift the aggregate-demand curve . In which direction would this event shift the curve?
- Describe the concept of aggregate demand and aggregate supply?Does each scenario below cause a movement along the curve or a shift in the curve? Explain using the model of Aggregate Demand and Aggregate Supply. [1] Consumers in the U.S. read negative economic news and they expect weak future economic growth. [2] Due to the decrease in the price level in the U.S., consumers substitute out of clothes made overseas into clothes made in the US. [3] An increase in the price level leads to less savings, which increases the interest rate. [4] Several European economies go into recession due to the current pandemic.Question 1A recent article published by the Federal Reserve (the central bank of the USA), suggests “the massive lockdown of the economy” has led to “a large negative demand shock. However, an accompanying increase in unemployment benefits has increased the income of some low- and middle-income households at least temporarily, which could helpfully support aggregate demand”. The excerpt above suggests an increase in household income, which might lead to improved aggregate demand. A) Draw a diagram to explain the above situation to show the impact of increased income and how it affects aggregate demand The article further states that “...supply chains in a number of industries have been affected not only internationally, with international trade in general greatly reduced, but also domestically, resulting in price increases for many goods and services”.B) In your opinion if prices of goods and services increase, what might be the impact on the aggregate supply of goods and services?…
- Question 1A recent article published by the Federal Reserve (the central bank of the USA), suggests “the massive lockdown of the economy” has led to “a large negative demand shock. However, an accompanying increase in unemployment benefits has increased the income of some low- and middle-income households at least temporarily, which could helpfully support aggregate demand”. The excerpt above suggests an increase in household income, which might lead to improved aggregate demand. A) Draw a diagram to explain the above situation to show the impact of increased income and how it affects aggregate demand The article further states that “...supply chains in a number of industries have been affected not only internationally, with international trade in general greatly reduced, but also domestically, resulting in price increases for many goods and services”.B) In your opinion if prices of goods and services increase, what might be the impact on the aggregate supply of goods and services?…do not answer questions if u do not have your own work Chapter 14&15 Aggregate Demand and Aggregate Supply question: The aggregate demand curve portrays the relationship between the price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each. do not add pic highly requesting do not copy and paste from CHEGG.COM OR coursehero.com OR INTERNET THIS QUESTIONS BEEN ANSWERS ALL OVER PLACE I HAVE ANSWERS FROM CHEGG TO WANT SOMETHING NEWDraw a diagram with aggregate demand, short-run aggregate supply, and long-run aggregate supply. Be sure to label correctly.
