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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

a monetary policypreventsany change in aggregate demand

a change in the value of assets such as stocks , bonds , gold , and property(passive) caused bya “ Change in aggregate demand

changes in one or more of the nonprice- level determinants(passive) caused bychanges in aggregate demand

changes in forces other than the price level(passive) is caused byA change in aggregate demand

the money supply as an aggregate demand determinantcauseschanges in aggregate demand

any factor affecting aggregate demand except the price level(passive) is caused bya change in aggregate demand

a change in the aggregate demand determinants(passive) is caused byA change in aggregate demand

Net imports ( exports - imports)Change in any of these determinantswill leadto change in Aggregate demand

Petroleum Other Liquids Crude oil , propane , other liquids including biofuels , , diesel , natural gas liquids Natural Gas . , heating oil , gasoline Changes in the following non price level factors , shifts of the entire aggregate demandAD ) curve . , determinantscausechanges in aggregate demand

changes in : A. production technology(passive) can be caused byChanges in aggregate demand

the saving ratecauseschanges in aggregate demand

fiscal policyleadsto change in aggregate demand

A change in government purchases and taxescauseschanges in aggregate demand

Policiescausechanges in aggregate demand

BBC ... changescausevariation in aggregate demand

increased ( or decreased ) spendingcausinga change in aggregate demand

changes in desired investmentwould ... leadto a change in aggregate demand

 Thingscausea change in aggregate demand

a change in the interest rate(passive) caused byThe change in aggregate demand

interest ratescausesaggregate demand to change

the financial friction in the credit markets formscauseschanges in the aggregate demand

a ) Output changeresultsfrom a change in aggregate demand

in which of the above two factorswould ... causea change in aggregate demand

to explaincauseschanges in aggregate demand

a change in taxation levels(passive) caused byThe change in aggregate demand

increases in base moneycausingchanges in aggregate demand

The main components of spendingcan causechanges in aggregate demand

the change in business investmentcausesa change in aggregate demand

the divergence between Sp and Ipcausesa change in aggregate demand

the mechanism by whichleadsto a change in AGGREGATE DEMAND

a change in both the price level and outputcausesa change in both the price level and output

a change in the price level 23will causea change in the price level 23

gaps between in an essay titled “ of money ... published in 1752can creategaps between in an essay titled “ of money ... published in 1752

gaps between the actual and potential levels of output ... and that such gaps can be prolonged keynesian economists stress the use of fiscal and of monetary policy to close such gapscan creategaps between the actual and potential levels of output ... and that such gaps can be prolonged keynesian economists stress the use of fiscal and of monetary policy to close such gaps

Recent ... aggregate supply(passive) are ... influenced byRecent ... aggregate supply

gaps slumping aggregate demand brought the economy well below thecan creategaps slumping aggregate demand brought the economy well below the

to a long - run change a. in output , but not the price levelleadsto a long - run change a. in output , but not the price level

a temporary change in total output How Do Changes in the Money Supply Affect Aggregate , Effect of Changes in Money Supply on Aggregate Demand Microeconomic Tips , Search the Internet or your textbooks for their meaningcausea temporary change in total output How Do Changes in the Money Supply Affect Aggregate , Effect of Changes in Money Supply on Aggregate Demand Microeconomic Tips , Search the Internet or your textbooks for their meaning

Recent Developments and Implications for the Conduct of Monetary Policy Dave Reifschneider Federal Reserve Board aggregate supply(passive) are ... influenced byRecent Developments and Implications for the Conduct of Monetary Policy Dave Reifschneider Federal Reserve Board aggregate supply

labour demandwill influencelabour demand

to an increase in supply that is lower than outputwill leadto an increase in supply that is lower than output

to a permanent change of higher outputleadsto a permanent change of higher output

among other variables by household consumptioncomposedamong other variables by household consumption

to a corresponding change in aggregate output as measured by real gross domestic productleadsto a corresponding change in aggregate output as measured by real gross domestic product

the long - run steady - state unemployment rate subject to capacity constraintscan influencethe long - run steady - state unemployment rate subject to capacity constraints

fluctuations in _ _ _can causefluctuations in _ _ _

alwaysresultalways

the quantity of G&S a country produces but not in the long runcan influencethe quantity of G&S a country produces but not in the long run

from fiscal expansion changing the interest rateresultsfrom fiscal expansion changing the interest rate

Each of these two simple scenarios(passive) is caused byEach of these two simple scenarios

Short - term fluctuations in employment(passive) are caused byShort - term fluctuations in employment

to such deviationsoften leadto such deviations

from an increase in government purchasesresultingfrom an increase in government purchases

to changes in the price level with no permanent effects on real GDPcan only leadto changes in the price level with no permanent effects on real GDP

a further change in aggregate output for the economycan causea further change in aggregate output for the economy

economic fluctuationscan causeeconomic fluctuations

a change in incomecausesa change in income

both the AD and SRAS lines to shiftwill ... causeboth the AD and SRAS lines to shift

to an inflationary gapleadsto an inflationary gap

markets(passive) caused bymarkets

on final economic conditionwill createon final economic condition

two cases of inflation , one ,(passive) is caused bytwo cases of inflation , one ,

periods of growth and downturn(passive) caused byperiods of growth and downturn

to no change in pricesleadsto no change in prices

a change in the quantity of output consumedcausesa change in the quantity of output consumed

The recessionary gap(passive) created byThe recessionary gap

only a small change in i 's desired relative pricecausesonly a small change in i 's desired relative price

the greatest impact on the output and employment in the economycausesthe greatest impact on the output and employment in the economy

a temporary change in an economy ’s total outputcausea temporary change in an economy ’s total output

a temporary change in an economys total outputcausea temporary change in an economys total output

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Smart Reasoning:

C&E

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