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Q: what is the equilibrium price level?
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Q: aggregate demand
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The curve of Aggregate Demand or aggregate demand has a negative slope. Explain why the aggregate demand curve can have a negative slope.
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- "The demand curves for all products have negative slopes. For instance, the demand curves for milk,automobiles, personal computers, and shirts all have negative slopes. Therefore, because the aggregate demand curve shows the demand for all products, it too must have a negative slope. " Comment on this assertion.Suppose that the price index of 150 for quantity demanded of US Real GDP is 10.0 trillion worth of goods. Do these data represent aggregate demand or a point on an aggregate demand curve? Explain your answer.Are the determinants of aggregate demand the same things that apply to demand for an individual good?
- Consider the following equations describing the components of demand and equilibriumin the goods market:C= 120 + 0.5 (Y - T)I = 40G=20T= 40 What is aggregate demand?Draw the graph (aggregate supply and aggregate demand curves) of an economy that is in equilibrium.The point of intersection between aggregate demand curve and aggregate supply curve is called A aggregate demand B market demand C effective demand D demand
- Draw an aggregate demand and supply diagram for Japan. In the diagram, show how each of the following affects aggregate demand and supply: The U.S. gross domestic product falls. The level of prices in Korea falls. Labor receives a large wage increase. Economists predict higher prices next year.Define aggregate supply. Give three reasons why the aggregate supply curve slopes upward. Explain the determinants of the aggregate supply (AS) and describe how the AS curve will shift when one of these determinants changes.The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the price level is 140, and the quantity of output demanded is $300 billion. Moving down along the aggregate demand curve from point A to point B, the price level falls to 120, and the quantity of output demanded rises to $500 billion. 170 160 150 A 140 130 B 120 110 AD 100 90 100 200 300 400 500 600 700 800 OUTPUT (Billions of dollars) As the price level falls, the cost of borrowing money will causing the quantity of output demanded to This phenomenon is known as the effect. Additionally, as the price level falls, the impact on the domestic interest rate will cause the real value of the dollar to in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will therefore and the number of foreign products purchased by domestic consumers and firms (imports) will Net exports will therefore causing the quantity of domestic output demanded to . This phenomenon…
- Is the following statement TRUE or FALSE? Please provide reason for the answer. The aggregate supply curve is shifted rightward by an increase in tax rates.The following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to increase aggregate supply. Determinant Prices of Nonlabor Inputs Productivity Nominal Wage Rate Change Needed to Increase Short-Run Aggregate SupplyThe following graph shows an increase in aggregate supply (ASAS) in a hypothetical economy. Specifically, aggregate supply shifts to the right from AS1AS1 to AS2AS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion. The following table lists several determinants of aggregate supply. Complete the table by indicating the changes in the determinants necessary to increase aggregate supply. Determinant Change Needed to Increase ASAS Nominal Wage Rate Tax Rates Technology