MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 10, Problem 19SQ
To determine

The indication of the shift in the aggregate demand curve.

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Aggregate Supply, and a New Equilibrium How will each of the following likely change the aggregate supply curve? Drag and drop options on the right-hand side and submit. For keyboard navigation... SHOW MORE ✓ Increase in the labor force. Increase in capital. Increase in the cost of raw materials. 7/20 answered Decrease in costs created by regulations. Increase in unemployment. = E = = = The aggregate supply curve shifts to the right. The aggregate supply curve shifts to the right. The aggregate supply curve shifts to the right. The aggregate supply curve does not move but there is movement along the curve. The aggregate supply curve shifts to the left. The aggregate supply curve shifts to the left. The aggregate supply curve does not move but there is movement along the curve.
1) Define aggregate demand and aggregate supply. 2) Give three reasons why the aggregate demand curve slopes downward. 3) Give three reasons why the aggregate supply curve slopes upwards.
7) Spending on the war in Afghanistan is essentially categorized as government purchases. How do increases in spending on the war in Afghanistan affect the aggregate demand curve? A) They will move the economy up along a stationary aggregate demand curve. B) They will move the economy down along a stationary aggregate demand curve. C) They will shift the aggregate demand curve to the right. D) They will shift the aggregate demand curve to the left.
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