« previous next »

Author Question: What is the relationship between the aggregate planned expenditure curve and the aggregate demand ... (Read 80 times)

shofmannx20

  • Hero Member
  • *****
  • Posts: 562
on: Jun 29, 2018
What is the relationship between the aggregate planned expenditure curve and the aggregate demand curve? Explain the relationshi
 
  What will be an ideal response?

Question 2

In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,
 
  A) the demand for loanable funds curve shifts rightward to restore the equilibrium.
  B) there is a surplus of investment.
  C) there is a shortage of loanable funds.
  D) the demand for loanable funds curve shifts leftward to restore the equilibrium.
  E) there is a surplus of loanable funds.


bookworm410

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 29, 2018
Answer to Question 1

The aggregate demand curve is derived using the aggregate planned expenditure curve. The aggregate planned expenditure curve shows how equilibrium expenditure changes when the price level changes. Then the aggregate demand curve plots the price level and the resulting equilibrium expenditure to illustrate how equilibrium expenditure (and hence the aggregate quantity of real GDP demanded) depends on the price level.

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Four Arch Curve Four Arch Curve
The Light Curve of a Nova The Light Curve of a Nova
Relationship between psychosocial adaptation Relationship between psychosocial adaptation
Past and Future Use of Aggregate Past and Future Use of Aggregate
Relationship between Resource Use and Growth Relationship between Resource Use and Growth
Most elderly enjoy maintaining relationship with their grandkids Most elderly enjoy maintaining relationship with their grandkids
Video: Definitions of stroke volume, preload definition & Factors influencing stroke volume

For a complete list of videos, visit our video library