Why is a period of stagflation part of the normal aftermath of a period of excessive aggregate demand?

Q: What stage in the business cycle does the shift in Aggregate Demand represent?

A: Aggregate demand refers to the total expenditure that all the sectors of the economy are planning to…

Q: ow can policy makers accommodate the adverse shift in short-run aggregate supply

A: Aggregate supply(AS) refers to the total supply(SS) of goods & services, which firms plan to…

Q: Which of the following scenarios would result in a decrease in Aggregate Demand? A) The congress…

A: Aggregate Demand is the sum of consumption expenditure, government spending, investment spending and…

Q: Show and explain the effects of an increase in aggregate demand in the long-run and short-run by…

A: AS/AD model depicts the the total supply and total demand interaction at macro level. Aggregate…

Q: Using the “dynamic aggregate demand” and “dynamic aggregate supply” (DAD/DAS) model: (b) draw a…

A: To assess the dynamic changes in output and inflation after various macroeconomic events, a dynamic…

Q: Why long - run aggregate supply (AS) schedules are drawn vertically and short -run schedules are…

A: In an economy, aggregate supply curve is used to express the total supply of output by all the…

Q: Refer to the following figure to answer the following questions. Price level (P) LRAS 4 B D C SRAS3…

A: Macroeconomic monitoring will remain critical since it determines the economy's final expansion path…

Q: the difference between the short-run aggregate supply curve and the long-run aggregate supply.

A: ANSWER   the difference between the short-run aggregate supply curve and the long-run aggregate…

Q: What is the long run aggregate supply curve

A: An aggregate supply curve shows the relationship between the output produced in an economy and the…

Q: Explain how the aggregate demand curve is derived.

A: The aggregate demand shows the relationship between price level and quantity demanded. That is,…

Q: Explain why the short-run aggregate supply curve might be fairly flat in the Keynesian zone of the…

A: The Short-Run Aggregate Supply Curve (SRAS) shows how much is produced overall in an economy over a…

Q: Which of the following factors would NOT cause a shift in the aggregate demand curve? a) Changes in…

A: The AD or aggregate demand represents total spending in an economy. The represents the total amount…

Q: What shape is the long-run aggregate supply curve? Why does it have this shape?

A: An economy attains equilibrium when aggregate demand is equal to the aggregate supply.

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: Why is an economy not in equillibrium when aggregate demand is not equal to aggregate supply?

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: The aggregate demand curve slopes downward because at lower price levels the purchasing power of…

A: Aggregate demand is the total quantity of goods and services which is demanded in by a nation at a…

Q: Question 3. Define stagflation. Using AD/AS diagram, examine the possible factors that can lead to…

A: The economies around the world tend to operate upon the basis of the forces of expenditures, and…

Q: For the first four questions today, what is the effect of each scenario on aggregate demand? In each…

A: Aggregate demand curve is the graphical representation of total demand of goods and service at…

Q: s it better to concentrate on aggregate demand or aggregate supply in a recession?

A: A recession is a phase of contraction of the business cycle when there is a general fall in economic…

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: Which of the following are likely to increase investment and as a result, aggregate demand? A)…

A: Aggregate demand is the combination of four components that describes the demand for domestic output…

Q: Aggregate Supply Curve may shift to right due to improvement in technology

A: An rise in technology causes all AS curve to move rightward. A reduction in technology causes all AS…

Q: If the economy is operating in the neoclassical zone of the SRAS curve and aggregate demand falls,…

A: Different approaches to explaining economic activities result in different findings for a specific…

Q: How does the policy rate hitting a floor of zero lead toan upward-sloping aggregate demand curve?

A: The policy rate hitting a floor of zero leads to an upward-sloping aggregate demand curve due to the…

Q: Analyse the concept of aggregate supply with the aid of a diagram

A: In an economy, the aggregate demand (AD) and the aggregate supply (AS) are the major factors of the…

Q: Are the determinants of aggregate demand the same things that apply to demand for an individual good

A: A market demand depicts the demand for a single commodity or service at various pricing. The desire…

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: Using the “dynamic aggregate demand” and “dynamic aggregate supply” (DAD/DAS) model: (a) draw a…

A: The dynamic aggregate demand and supply (DAD/DAS) model is a macroeconomic model that shows how…

Q: The aggregate demand aggregate supply model is a quite useful tool for us to understand the economy.…

A: As the vaccine comes into the market, people will become more optimistic and hence, their confidence…

Q: Aggregate Supply curve shows the relationship between the price level and the real GDP supplied in…

A: Aggregate Supply curve shows the relationship between the price level and the real GDP supplied in…

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 is the difference between an anticipated and an unanticipated increase in aggregate demand?…

A: The difference between an anticipated and an unanticipated increase in aggregate demand is that the…

Q: How will a change in the money supply affect aggregate demand?

A: Aggregate demand (AD) shows the relationship between total spending and the price level. Total…

Q: Describe Say's Law and Keyne's Law in the Aggregate Demand and Aggregate Supply model.

A: The objective of the question is to understand and describe Say's Law and Keynes's Law in the…

Q: prepare a list of events that would shift the aggregate supply curve leftward or rightward.

A: The aggregate supply shows the total level of supply within the economy and also depicts how supply…

Q: Discuss one (1) reason for the downward slopping aggregate demand curve.

A: Reason for the downward slopping aggregate demand curve.

Q: macro-economy

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Q: List the three reasons for why the aggregate-demand curve slopes downward. Explain Answer

A: At each price level, an aggregate demand curve depicts total spending on domestic goods and…

Q: The following table lists several determinants of aggregate demand. Complete the table by indicating…

A: Aggregate demand represents the total demand for goods and services in an economy at any given price…