« previous next »

Author Question: What is the relationship between the aggregate planned expenditure curve and the aggregate demand ... (Read 57 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?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Relationship between winter rainfall and chuckwalla, Sauromalus, size Relationship between winter rainfall and chuckwalla, Sauromalus, size
Four Arch Curve Four Arch Curve
Effect-log dose curve for the analgesic action of three narcotics and aspirin. Hydromorphone is more ... Effect-log dose curve for the analgesic action of three narcotics and aspirin. Hydromorphone is more ...
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
A close relationship between greenhouse gas emissions and a country’s gross domestic product A close relationship between greenhouse gas emissions and a country’s gross domestic product
The urinary system: Relationship of the kidneys to the vertebrae The urinary system: Relationship of the kidneys to the vertebrae
Video: Cardiac Cycle (Part 3 of 4)

For a complete list of videos, visit our video library