How did the decline in U.S. home prices in 2006–2008 affect aggregate demand?

The following events shift either aggregate demand, aggregate supply, both or neither. Using a diagram, illustrate the effect of the events on the economy. In particular, explain the effect of each event on price level, real GDP and equilibrium in the economy. A) A recent business survey reported that business confidence has declined. B) Government cuts the rate of personal income tax after a pandemic caused an economic slowdown. C) A recent flooding in a small rural region destroyed the potato crop. D) A booming economy in a neighbouring country has drawn many working age people (and their families) to emigrate there in search of jobs and better life.

What effects would each of the following have on aggregate demand or       aggregate supply?  Justify your answer. In each case use a diagram to show the expected effects on the equilibrium price level and real output level in the economy.  Assume that all other things remain constant and prices are inflexible downward.  (a) A reduction in interest rates at each price level   (b) A sizable increase in labor productivity.   (c) The nation’s currency appreciates against its major trading partners  .

The following graph shows an aggregate demand curve (AD) illustrating the inverse relationship between the price level and the quantity of Real GDP in the United States. During World War II, the United States increased military spending. Show the effect of the following scenario on the aggregate demand curve by dragging the curve or moving the point to the appropriate position. Note: Tool tip: To move the curve, click and drag any part of the curve. The curve will snap into position, so if you try to move it and it snaps back to its original position, just try again and drag it a little farther. PRICE LEVEL Aggregate Demand I I " I 1 REAL GDP AD AD (?)

How does the increase in U.S energy production and the subsequent reduction in the reliance on imported oil affect the U.S Aggregate demand and/or short run aggregate supply curve(s) ? Examine the potential impact on real GDP and the average price level in the U.S.

Consider the different characteristics of the aggregate demand curve and the short‑run aggregate supply curve. For each of the statements below, determine which curve is being described and place the description into the proper bin. Answer bank in image Aggregate demand Short‑run aggregate supply

Suppose that the White House decides to sharply reduce military spending without increasing government spending in other areas. a) Comment on the effect of this measure on aggregate demand. b) Show your answer graphically.

A vertical aggregate supply graph indicates that aggregate demand has no effect on: A) Prices B) Inflation C) Wages D) Quantity of output

What happens to price level when aggregate demand decreases and aggregate supply is set at potential output? (Neoclassical economics) Select the correct answer below: Price level decreases Price level remains the same Price level increases None of the above

In 2006, the economy of Singsville had an aggregate demand and aggregate supply according to the following schedule:Price level           Aggregate Demand     Short-Run Aggregate Supply100                             $1445                                  $1085110                             $1380                                  $1140120                             $1315                                  $1195130                             $1250                                  $1250140                             $1185                                  $1305150                             $1120                                  $1360160                             $1055                                  $1415 What was the equilibrium price level in Singsville in 2006?