Which of the following is most likely to increase investment and, as a result, increase aggregate demand? increased business taxes lower interest rates pessimistic business forecasts an increase in inventory levels
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- Which would most likely increase aggregate supply? An increase in the prices of imported products An increase in productivity A decrease in business subsidies A decrease in personal taxesWhich of the following would increase aggregate demand? A) Increase in taxation. B) Increase in savings. C) Decrease in consumption spending. D) Increase in government spending.Is a change in business investment a determinant of aggregate demand or aggregate supply? What happens to the equilibrium Real GDP and price level when business investment decreases? Would this cause a recession or inflation? Is a change in consumer spending a determinant of aggregate demand or aggregate supply? What happens to the equilibrium Real GDP and price level when consumer spending decreases? Would this cause a recession or inflation?
- Are the determinants of aggregate demand the same things that apply to demand for an individual good?improvements in productivity shift the aggregate supply curve outward. true falseWhich of the following scenarios would result in a decrease in Aggregate Demand? A) The congress passes a new income tax cut. B) A rise in imports from Europe C) A decline in investors confidence causes investment to fall. D) Technology improvements lead to productivity gains
- Which of the following would shift the U.S. aggregate demand to the right? European countries increased demand for US products A world economic recession US companies increased imports of oil Canada reduced the demand for US productsWhat effects would increase in aggregate supply have on price levels and GDP?The equilibrium price level and the equilibrium level of real GDP are jointly determined by the intersection of the economy’s aggregate supply and aggregate demand schedules. True or False
- Which of the following are likely to increase investment and as a result, aggregate demand? A) falling real interest rates B) rising real interest rates C) increased business taxesWhich of the following will not cause Australia's Aggregate Demand curve to shift to the right? Consumers increase the proportion of their spending that is spent on imports Tax rates are decreased There is an increase in government spending The Australian dollar depreciatesWhich combination of factors would most likely increase aggregate demand? Pick your answer from below and explain your answer choice using aggregate demand and aggregate supply. An increase in household indebtedness and a decrease in net exports. An increase in consumer wealth and a decrease in interest rates. An increase in net exports and a decrease in government spending. An increase in business taxes and a decrease in profit expectations.