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Blob

Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

the trends you mention ... will continueto cause, aggregate demand problems

by weak U.S. household spending(passive) caused byworld aggregate demand

by an increase in employment(passive) caused byHigher aggregate demand

government borrowingwill ... causehigher aggregate demand

if inflation rises at the zero lower bound but the Fed keeps nominal interest rates at zero , then the real interest rate fallscausingaggregate demand to rise

an increase in one or more of the components of aggregate demand ( AD(passive) caused byaggregate monetary demand

The level of employment in the economy ... designedto influencethe level of aggregate demand

Low wealthcauseslow aggregate demand

orderto influencethe level of aggregate demand

spending and taxes , designedto influencethe level of aggregate demand

spending and taxesto influencethe level of aggregate demand

that were designedto influencethe level of aggregate demand

changing government spending and taxesto influencethe level of aggregate demand

Interest rates are normally usedto influencelevels of aggregate demand

Policymakerscan influencethe level of aggregate demand

orderto influenceAD ( Aggregate Demand

national economic policesinfluencingthe level of aggregate demand

the Government changing the levels of Taxation and Government Spendingto influenceAD ( Aggregate Demand

by an increase in the disposable income of families(passive) caused byfine aggregate demand

their aim isto influenceAD ( aggregate demand

don?t spend itthus causinginadequate aggregate demand

involuntary job lossresultingfrom weakening aggregate demand

real debt burdens which in turn leads to debtor insolvency ... in turnleadsto lowered [ [ aggregate demand

the interest rate increaseswill resultrestrain aggregate demand

of consumption , investment and government expenditure(passive) is composedaggregate demand

of consumption , investment , government spending , and net exports(passive) was composedAggregate demand

of consumption , investment , government spending , and net exports , and(passive) was composedAggregate demand

the monetary authority(passive) to be set bynominal aggregate demand

investment spending increases ... that leads to the increase in real national income ( i.e. , GDP ) Fiscal Policycausingin aggregate demand

of four elements : consumption of goods and services ; investment by industry in capital goods ; government spending on public goods and services ; and net exports(passive) is composedAggregate demand

of demand for consumption goods and demand for investment goods(passive) is composedThe aggregate demand

by an increase in injections ( investment , government spending and exports(passive) caused byaggregate demand

by decrease in investment demand(passive) caused byaggregate demand

Fiscal Policy and Monetary Policy Governmentcan influenceaggregate demand

to control government expenditure or taxationto influenceaggregate demand

Monetary policy ... that is used to control the money supply and hence interest ratesto influenceaggregate demand

manipulation of level of government expenditure or taxes in the economyto influenceaggregate demand

by an increase in exports(passive) caused byaggregate demand

by the increase in exports(passive) caused byaggregate demand

an increase in exports(passive) caused byaggregate demand

real GDP to increasecausesreal GDP to increase

an increase in inflationcausesan increase in inflation

to higher output and employment growthleadingto higher output and employment growth

in inflationresultsin inflation

in turnleadsin turn

to price hike and inflationleadsto price hike and inflation

to higher inflationwould ... leadto higher inflation

to increased labour demand and a rise in wagesleadsto increased labour demand and a rise in wages

Demand - Pull Inflation = = = = = = = = = = = = = = = = = = = = = = = = = = This type of inflation(passive) is caused byDemand - Pull Inflation = = = = = = = = = = = = = = = = = = = = = = = = = = This type of inflation

This type of inflation(passive) is caused byThis type of inflation

into depressing activitiesresultedinto depressing activities

Continuing increases in GNP(passive) caused byContinuing increases in GNP

problems only if the aggregate supply can not match the rising aggregate demandcausesproblems only if the aggregate supply can not match the rising aggregate demand

to an increase in jobsto leadto an increase in jobs

Continuing reductions in GNP(passive) caused byContinuing reductions in GNP

the view(passive) is being caused bythe view

to employmentleadsto employment

to a small recessionleadingto a small recession

to prolonged periods of high unemploymentcan leadto prolonged periods of high unemployment

a picture of an economy weakeningpaintsa picture of an economy weakening

to recessioncan leadto recession

to a small recession in ] 991 and 1992leadingto a small recession in ] 991 and 1992

to the downward deflationary spiralcontributesto the downward deflationary spiral

to a decrease in national output and hence national income resulting in a rise in unemploymentwill leadto a decrease in national output and hence national income resulting in a rise in unemployment

in an increase in national output and hence national income and a fall in unemploymentresultingin an increase in national output and hence national income and a fall in unemployment

in accumulation of unintended inventories with the firmsresultin accumulation of unintended inventories with the firms

in a rise in inflation and national output and a fall in unemploymentresultingin a rise in inflation and national output and a fall in unemployment

high unemploymentcausinghigh unemployment

in a larger increase in national output and hence national incomeresultingin a larger increase in national output and hence national income

in an increase in national output and hence national incomeresultingin an increase in national output and hence national income

in a larger decrease in national output and hence national incomeresultingin a larger decrease in national output and hence national income

in a fall in national output and hence national incomeresultingin a fall in national output and hence national income

to a decrease in national output and hence national incomewill leadto a decrease in national output and hence national income

in a decrease in national output and hence national incomeresultingin a decrease in national output and hence national income

exacerbated bycausedexacerbated by

in a smaller decrease in national output and hence national incomeresultingin a smaller decrease in national output and hence national income

in an insignificant increase in national output and hence national incomeresultingin an insignificant increase in national output and hence national income

in inflation ( not in more income and employmentwill resultin inflation ( not in more income and employment

in a substantial increase in national output and hence national incomeresultingin a substantial increase in national output and hence national income

in a rise in the general price level and hence higher inflationresultingin a rise in the general price level and hence higher inflation

Blob

Smart Reasoning:

C&E

See more*