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How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
Going left to right on the aggregate demand curve real GDP?
rises as price level falls
Ceteris paribus the price level will fall when A The aggregate supply curve shifts to the left B The aggregate demand curve shifts to the left C The aggregate demand curve shifts to the right?
b
What happens going from left to right on the aggregate demand curve real GDP?
rises as price level falls
An decrease in taxes shifts the aggregate demand curve to the?
right
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
Going left to right on the aggregate demand curve real GDP?
rises as price level falls
Ceteris paribus the price level will fall when A The aggregate supply curve shifts to the left B The aggregate demand curve shifts to the left C The aggregate demand curve shifts to the right?
b
What happens going from left to right on the aggregate demand curve real GDP?
rises as price level falls
An decrease in taxes shifts the aggregate demand curve to the?
right
What would cause the aggregate demand curve to shift to the right?
The aggregate demand curve will shift to the right as the economy expands. When that happens, the quantity of output demanded for a given price level rises.
As you move from left to right the aggregate demand curve?
slopes downward
Cause the aggregate demand curve to shift outward?
Real shocks will determine the direction of the long-run aggregate demand curve. A real shock is an event or certain factors that cause more or less production. A war, for instance will halt factories from producing goods and will cause the aggregate demand curve to shift left. Higher production will lead to an outward shift to the right.
An increase in government spending on health care is likely to shift the?
Aggregate demand curve to the right. Stay Golden
Explain movements along the aggregate demand curve and shifts of the aggregate demand curve?
Movements along the aggregate demand curve are caused by changes in price level - real wealth effect, interest rate effect and open economy effect. If some non-price level determinant causes total spending to increase/decrease then the curve will shift to the right/left - consumption, investment, government expenditure, net exports.
Why would a tax cut would shift the aggregate demand curve outward showing an increase in aggregate demand?
Personal taxation is a amount taken by the Government or State from an individuals income. A cut in taxes would mean that people effectively have more income, therefore more income can be spent on goods and services. This ability for consumers to spend more means that they will demand more, shifting the aggregate demand curve to the right. It is the same in a business sense. If there was to be tax cuts for businesses, businesses have the ability to spend more in turn increasing aggregate demand. ~MB
