« previous next »

Author Question: Identify four changes in the economy that would cause the aggregate demand curve to decrease (shift ... (Read 81 times)

dbose

  • Hero Member
  • *****
  • Posts: 597
on: Jun 30, 2018
Identify four changes in the economy that would cause the aggregate demand curve to decrease (shift to the left).

Question 2

Discretionary fiscal policy is best defined as:
 a. the deliberate change in tax laws and government spending to change equilibrium income.
  b. the deliberate manipulation of the money supply to expand the economy.
  c. the arbitrary fluctuation in tax laws and budget requirements.
  d. the automatic change in certain fiscal instruments when real GDP changes.
  e. the policy action taken by the Congress to reduce the federal budget deficit.


kaylee05

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 30, 2018
Answer to Question 1

The aggregate demand curve might be shifted to the left (a decrease) because of a decrease in consumption spending because of higher income taxes, a fall in consumer confidence or a reduced stock market wealth. Aggregate demand could also shift left if investment decreased due to higher real interest rates or a pessimistic economic outlook. Aggregate demand could also be decreased through a reduction in government purchases, or transfer payments. If net exports fell, this would also decrease aggregate demand.

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Decrease in Fertility, 1800–1900 Decrease in Fertility, 1800–1900
A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ... A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ...
Shift to one side. Let the recipient’s arm hang down. Knead upper and lower arm muscles from ... Shift to one side. Let the recipient’s arm hang down. Knead upper and lower arm muscles from ...
An Environmental Kuznets Curve An Environmental Kuznets Curve
Identify the variable representing each described quantity in the equation Identify the variable representing each described quantity in the equation
Typical bacterial population growth curve showing the initial lag phase Typical bacterial population growth curve showing the initial lag phase
Video: Audiology

For a complete list of videos, visit our video library