Besides consumption, the component(s) of aggregate demand is (are): investment e

Question

Besides consumption, the component(s) of aggregate demand is (are): investment expenditures. investment expenditures and government expenditures, investment expenditures and net exports. investment expenditures, government expenditures, and net exports. The aggregate demand curve is downward sloping because of: the inverse relationship between price and quantity demanded. changes in expectation of future prices. unexpected changes in commodity prices. the wealth effect of a change in aggregate price level. An increase in aggregate demand is seen as a(n)_the aggregate demand curve. If government increases income tax rates, the aggregate demand curve is likely to- shift to the right, shift to the left, remain constant, become positively sloped. Which of the following will increase short-run aggregate supply? a law that requires health insurance for all employees an increase in the aggregate price level a large decrease in the price of oil an increase in the minimum wage The long-run aggregate supply curve is vertical because in the long run: technological progress outpaces raises in nominal wages, all factors of production increase. the price of labor is flexible, while the price of physical capital is fixed, all prices are flexible.

Explanation / Answer

3. D is the correct option AD = C+G+I+X-M, where c-consumption, G-government spending, I-investment, X-M -Net exports

4. The reason for AD to be down ward sloping is the wealth effect due to changes in price. The other reasons for downward sloping demand curve are interest rates and net exports effect.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.