ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Homework (Ch 20)
PRICE LEVEL
160
150
140
130
120
110
100
8
II
II
II
II
AD₂
AD₁
0 100 200 300 400 500 000 700 800
OUTPUT (Billions of dollars)
The following table lists several determinants of aggregate demand.
Fill in the missing values in the table by selecting the change in each scenario required to increase aggregate demand.
Change Required to Increase AD
Expected rate of return on investment
Incomes in other countries
Consumer expectations about future profitability
Government spending
Improve
Increase
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Transcribed Image Text:Homework (Ch 20) PRICE LEVEL 160 150 140 130 120 110 100 8 II II II II AD₂ AD₁ 0 100 200 300 400 500 000 700 800 OUTPUT (Billions of dollars) The following table lists several determinants of aggregate demand. Fill in the missing values in the table by selecting the change in each scenario required to increase aggregate demand. Change Required to Increase AD Expected rate of return on investment Incomes in other countries Consumer expectations about future profitability Government spending Improve Increase
4. Determinants of aggregate demand
The graph below is associated with a hypothetical country. Consider an increase in aggregate demand (AD). Specifically, aggregate demand shifts to
the right from AD, to AD,, causing the quantity of output demanded to rise at each price level. For instance, at a price level of 140, output is now
$400 billion, where initially it was $300 billion
PRICE LEVEL
170
160
130
130
120
110
100
8
0
II
200
100
II
II
II
I
I
100
300 400
OUTPUT (Billions of dollars)
AD₁
600
700
800
The following table lists several determinants of aggregate demand.
(2)
expand button
Transcribed Image Text:4. Determinants of aggregate demand The graph below is associated with a hypothetical country. Consider an increase in aggregate demand (AD). Specifically, aggregate demand shifts to the right from AD, to AD,, causing the quantity of output demanded to rise at each price level. For instance, at a price level of 140, output is now $400 billion, where initially it was $300 billion PRICE LEVEL 170 160 130 130 120 110 100 8 0 II 200 100 II II II I I 100 300 400 OUTPUT (Billions of dollars) AD₁ 600 700 800 The following table lists several determinants of aggregate demand. (2)
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