1. make a list of thing and explain that would shift the aggregate demand curve

Question

1. make a list of thing and explain that would shift the aggregate demand curve to the right.

2. supposed that a country has 120 billion of nation savings, and 80 billion of domestic investment. IS IT POSSIBLE? and where did the

3.What is the difference between monetary policy amd fiscal policy?other 40 billions od national savings go?

4a. use a graph representing the market of loanable funds

4b and use the graph to explain what happen to interest rate and investment if the government budgets go from a deficit to a surplus.

Explanation / Answer

Answers:

1. Make a list of thing and explain that would shift the aggregate demand curve to the right.

The aggregate demand curve may shift to the right by the following aspects: They are:

2. Supposed that a country has 120 billion of nation savings and 80 billion of domestic investment. Is it possible? And where did the other 40 billion did national savings go?

     The national savings is more than the domestic investment. This is possible in foreign sector or an open economy. The remaining $40 billion is for net capital outflow in the form of purchases of foreign assets by that county’s residents. The country’s citizens can save by buying their assets or by buying foreign assets.

3. What is the difference between monetary policy add fiscal policy?

   The monetary policy is also known as the monetary authority of the country. It involves regulation of the money supply. It is the government actions to increase or decrease the money supply and change banking requirements.

   The fiscal policy involves government spending and taxing. It is the government spending and taxation systems decisions designed to control inflation, reduce unemployment, improve the general

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