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An Aggregate Excess (aka a Deductible) is a predetermined amount that the insured will bear in any one year for all insured losses occuring during that year.
The amount can be stated as a dollar amount (ie. $xxxxx), as a percentage of the annual premium (ie. xx% of $AP), or as a predetermined percentge of the loss ratio (ie. insured to bear all losses under xx% of claims/AP%).
An Annual Aggregate Excess is normally agreed by calculating the expected losses, using the prior history of insured losses and adjusting for trends etc..
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What will happen when Aggregate demand and aggregate supply decrease?
When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
What are the characteristics of macroeconomics?
Macroeconomics deals with studying the behavior, decision making, performance and structure of an economy as a whole instead of its component parts. Macroeconomics usually studies the aggregate supply/aggregate demand model, using it to explain the performance of the GDP of a nation based on the various components.
What is aggregate demand and what are the factors that affect aggregate demand?
nothing
What happens to the aggregate expenditures curve when autonomous expenditures fall?
Aggregate expenditures will shifts down by the decline in aggregate expenditures.
