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Qaagi - Book of Why

Causes

Effects

A change in any of the following factorscould causethe aggregate demand curve to

a change in one of the aggregate demand determinants(passive) caused bythe aggregate demand curve

this non - price factorscausea shift in aggregate demand curve

menu costs d a shift of the aggregate demand curve caused by money illusion Maytag Neptune(passive) caused bythe aggregate demand curve

changes in prices in the economy and shifts in the aggregate demand curve caused by changes in other factors influencing the four components of spending(passive) caused byan aggregate demand curve

Leftward shift of An increase in interest rateswill causeaggregate demand curve

The third factorinfluencesthe aggregate demand curve

some factors other than the price level change which cause shifts in aggregate expenditure curvewill causea shift in aggregate demand curve

Michael G. Lanyi Chapter 28 — Canadian UE , Infl & B. C. 1)Which of the followingwould causethe aggregate demand curve

plotting the quantity demanded at each price level on a graph and connecting the data points(passive) is created byAn aggregate demand curve

An increase in the marginal propensity to consumecreatesa steeper aggregate demand curve

An increase in consumptionleadsthe aggregate demand curve

In this video I cover aggregate demand ( AD ) , aggregate supplycausesthe aggregate demand curve

The increase in investmentcausesan increase in the aggregate demand curve

a change in the price level(passive) caused byan aggregate demand curve

In order to understand the entire market for CDs , economists add the demand of all consumers at each possible price ,creatingan aggregate demand curve

An increase in money supplycausesa leftwardshift in the aggregate demand curve

using monetary policyto setan Aggregate Demand curve

leftward shift of An increase in government purchaseswill causea _ _ _ the aggregate demand curve

An expansionary monetary policy will reduce interest rates and stimulate investment and consumption spendingcausingthe original aggregate demand curve

policy variables like increased government spending ( G ) , taxes ( T ) or the money supply ( M(passive) caused bythe aggregate demand curve

The decrease in the amount of government spending , G in C+I+G+(X - Mleadsto the Aggregate Demand Curve

A decrease in the nominal money supply ( Mwill causethe aggregate demand curve to _

equal to a given level of NGDP ( i.e. a hyperbola , or unit elastic(passive) could have simply been setThe aggregate demand curve

consumption income tax welfare(passive) caused bythe aggregate demand curve

an increase in expected inflationcausesan increase in the aggregate demand curve

Individual decisions added up across all individualscreatean aggregate demand curve

An increase in the MPCcreatesa steeper aggregate demand curve

Scott Sumner interjects : " Hell Heck Nick , why not just add the two together , and say ' an increase in expected NGDP growthcausesan increase in ( the ) Aggregate Demand ( curve

summing up individual demand curvesto createan aggregate demand curve

which , when coupled with the LM curve , allowsto createan aggregate demand curve

The relationship between aggregate demand and the price level ... a negative relationshipcreatesa downwardsloping aggregate demand curve

A reduction in the multipliercausesthe aggregate demand curve to

changes in monetary policy money(passive) can be caused byA shift in aggregate demand curve

usedto createan aggregate demand curve

another thingcausesthe aggregate demand curve

an increase in government spending If the government uses stabilization policies to reduce inflation(passive) caused bythe aggregate demand curve

a change in tastes for US produced goodswill leadto an aggregate demand supply curve

The two main ways the governmentcan influencethe aggregate demand curve

wealth effects ... in the current environmentinfluencethe aggregate demand curve

an increase in inflation , its called demand - pull inflationcausesan increase in inflation , its called demand - pull inflation

the rate of inflation(passive) caused bythe rate of inflation

demand - pull inflation which leads to higher production costs and further upward pressure on pricescausesdemand - pull inflation which leads to higher production costs and further upward pressure on prices

to inflation increase due to high pricesleadsto inflation increase due to high prices

in a fall in the average price level which would have a positive effect on inflationresultingin a fall in the average price level which would have a positive effect on inflation

DemandPull interaction of costpush inflation and demandpull inflation results in the Wage Price SpiralcausesDemandPull interaction of costpush inflation and demandpull inflation results in the Wage Price Spiral

by plotting the quantity demanded at each price level on a graph and connecting the data pointsis createdby plotting the quantity demanded at each price level on a graph and connecting the data points

the general price to risecausingthe general price to rise

from expansionary monetary policywould resultfrom expansionary monetary policy

inflationary pressurescreatinginflationary pressures

even more unemployment and a decrease in GDPcausingeven more unemployment and a decrease in GDP

a gap between an economy ’s actual and potential outputcreatesa gap between an economy ’s actual and potential output

to a shift in the aggregate demand curveleadsto a shift in the aggregate demand curve

economy - wide surplusescreateseconomy - wide surpluses

from any given initial change in spendingresultingfrom any given initial change in spending

prices to rise , not the tightness in the labor market that results from itcausesprices to rise , not the tightness in the labor market that results from it

a pressure upon the equilibrium output inducing a shift in equilibrium point from E to Ecreatesa pressure upon the equilibrium output inducing a shift in equilibrium point from E to E

from a change in monetary policyresultingfrom a change in monetary policy

confusioncausedconfusion

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Smart Reasoning:

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