What are three factors that help explain the slope of the aggregate demand curve? What is the most important factor?  Why?

Q: How was the aggregate supply curve different from the supply curve for single good like pizza?

A: Aggregate supply curve shows the response of the aggregate supply to the fluctuations in the price…

Q: Use the dynamic model of aggregate demand and supply to illustrate a situation where the economy is…

A: The AD-As model implies inflation may arise due to shifting in the Aggregate demand curve on the…

Q: What factors affect aggregate demand?

A: Aggregate demand sums the desired quantity demanded of final commodities and services by different…

Q: What determines aggregate supply in the short run and what determines it in the long run?

A: Aggregate supply refers to the whole quantity of products and services generated within an economy…

Q: Explain with example how a reduction in taxes without a reduction in government spending may have no…

A: The economies around the world tend to focus on their growth, stability in the financial, and…

Q: How does it help to explain the downward slope of the aggregate demand cure?

A: Aggregate demand refers to a total value of finished goods and services demanded in an economy…

Q: Why can't an economy generate its own aggregate demand when needed?

A: A system for creating, distributing, and consuming goods is referred to as an economy. The producers…

Q: What causes the aggregate supply curve to have an upward slope in the short run, but a vertical…

A: Total supply of goods and services produced at a given price in a given period of time within an…

Q: Why does the aggregate demand curve slope downward?

A: Aggregate demand curve shows the summation of consumption spending, investment spending, government…

Q: what is aggregate demand and what are its advantages and disadvantages within a company?

A: Aggregate Demand is the relationship between the quantity of output demanded and the aggregate price…

Q: What are the major factors causing a shift in aggregate demand (inward or outward)?

A: Aggregate demand refers to the total demand for goods and services in the economy. AD = C + I + G +…

Q: Illustrate each of the following situations with a graph showing aggregate supply and aggregate…

A: Case 1: Increase in government spending while money supply held by the Fed is constant. The constant…

Q: Using the line drawing tool, show the effect on the aggregate demand curve, and label your new…

A: Aggregate demand refers to the collective demand for goods and services in an economy. It has a…

Q: What effect would an increase in aggregate demand have on price level and GDP?

A: Answer: Aggregate demand: It refers to the total demand for final goods and services in an economy…

Q: Explain why the Aggregate Demand curve is downward sloping

A: Aggregate demand curve is demand for finished products (goods and services) in an economy at a…

Q: What is the shape of the aggregate supply curve in the long run and in the short run? Explain the…

A: The AS {"aggregate supply"} is described as the total Q {"quantity"} of output that the firms will…

Q: the factors that can increase short-run aggregate supply?

A: Aggregate supply- It is the total supply of goods and services by an economy.Short-run aggregate…

Q: What relationship does the short-run aggregate supply curve represent?

A:

Q: What are the major components of aggregate demand? How these components impact the Aggregate Demand?…

A: The total demand for finished products and services in an economy is referred to as aggregate…

Q: What are the major factors that determine investment, and what impact does each have on aggregate…

A: Investment refers to the economic activity under which households and firms make an agreement or…

Q: Changes in what four variables will shift the long run aggregate supply curve?

A: (Q) Changes in what four variables will shift the long run aggregate supply curve?

Q: What change does recession has on the price and output level when the change in aggregate demand is…

A: Recession: It is an economic situation or a phase of the business cycle in which the economy…

Q: What effects would  increase in aggregate supply have on price levels and GDP?

A: In economics, the aggregate supply level is a concept which measures the level of total output or…

Q: the definition and examples of aggregate demand?

A: Aggregate demand: Aggregate demand is up to a nation's gross domestic product (GDP) within the…

Q: How do Classical and Keynesian economists differ in their view of the aggregate supply curve?

A: Classical school of economics is based on free market. They believes that market forces works…

Q: Is the following statement TRUE or FALSE? Please provide reason for the answer. The aggregate…

A: Aggregate supply is defined as the total amount of supply of goods and services in the economy in a…

Q: Explain why the Aggregate Supply curve is upward sloping

A: In Macroeconomics, the concept of aggregate supply(AS) and aggregate demand(AD) is used to ascertain…

Q: If aggregate supply is vertical, what role does aggregate demand play in determining output? In…

A: Aggregate supply describes, for each given price level the quantity of output firms is ready to…

Q: Graphically illustrate the long-run aggregate supply curve. Explain

A: In the long run, the aggregate supply curve is assumed to be vertical that is it does not change…

Q: Why does the economy's aggregate demand curve have a negative slope?

A: Three reasons that show the Aggregate Demand curve is downward sloping (or have a negative slope):…

Q: What factors shift the short-run aggregate supply curve?Do any of these factors shift the long-run…

A: Aggregate supply refers to the total supply of services and goods that is planned to be supplied in…

Q: Draw the aggregate demand and aggregate supply curves and explain the following macroeconomics…

A: The economies around the globe have various entities, which operates with the motive of maximizing…