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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

net exportswill causea reduction in the level of aggregate demand

Such a drastic fall in the money supplyinevitably ledto a massive decrease in aggregate demand

The resulting decline in investment ... in turnleadsto a decline in aggregate demand

by a decline in investment ( I(passive) caused ... byA decline in aggregate demand

The increase of the money supplycausedan increase in aggregate demand

unemployment to increaseleadsto a decline in aggregate demand

investment fallscausesdecline in aggregate demand

aggregate supply ( incomecausesa decline in aggregate demand

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

For example , in recession , there is excess savingleadingto a decline in aggregate demand

in turnleadsto a decline in aggregate demand

A decrease in consumption expenditure , investment expenditure and government expenditure on goods and serviceswill leadto a decrease in aggregate demand

positive increases to aggregate demandcan causeincrease in aggregate demand

Consumption expenditures , investment expenditures , government purchases , even net exports , all decreaseresultingin a decrease in aggregate demand

is excess of savingleadsto a decline in aggregate demand

the deflationresultedfrom a decline in aggregate demand

savingleadsto a decline in aggregate demand

is saidto causean increase in aggregate demand

A decrease in consumption expenditure and investment expenditurewill leadto a decrease in aggregate demand

Reduction in national incomeleadsto a decline in aggregate demand

a reduction in the expected rate of inflationcausesa reduction in aggregate demand

the following reasons(passive) may be caused byIncrease of aggregate demand

the private sector ... a process of private sector deleveraginghas ledto a decline in aggregate demand

The global financial crisis coupled with domestic economic conditions in South Africais causinga decline in aggregate demand

A decrease in government spending and an increase in taxesresultin a decrease in aggregate demand

an increase in aggregate demand and a decreasecausesa decrease in aggregate demand

Increase in Aggregate Demand Decrease in a component of real expenditurescausesa decrease in aggregate demand

Keynes ... savingleadsto a decline in aggregate demand

The dominoledto a decline in aggregate demand

Any change in a variable that increases the amount of output people want to buy at a given price level is saidto causean increase in aggregate demand

consumption and investment to declineleadsto a decrease in aggregate demand

If this happens , consumption expenditure will fallwill leadto a decrease in aggregate demand

A decrease in net exportsleadsto a decrease in aggregate demand

If this happens , investment expenditure will fallwill leadto a decrease in aggregate demand

When this happens , the demand for domestic goods will fallwill leadto a decrease in aggregate demand

Demand and an increase in twould leadto a decrease in aggregate demand

by a decrease in the money supply M(passive) perhaps caused bya reduction in aggregate demand

a decrease in the money supply(passive) perhaps caused byA. A reduction in aggregate demand

even net exports , all decreaseresultingin a decrease in aggregate demand

A decrease in consumptionwould leadto a decrease in aggregate demand

a depressioncausinga depression

from : AACSB : Analytic Blooms : Level 1to resultfrom : AACSB : Analytic Blooms : Level 1

a rise in equilibrium national outputwill causea rise in equilibrium national output

to a decrease in the total number of slaves soldalso ledto a decrease in the total number of slaves sold

national output and income to fall and unemployment to increasewill causenational output and income to fall and unemployment to increase

a decrease in YOUR EMPLOYMENTthus causinga decrease in YOUR EMPLOYMENT

an increase in aggregate supplycausesan increase in aggregate supply

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

Demand - pull inflation(passive) is caused byDemand - pull inflation

Demand - Pull Inflation Demand - pull inflation(passive) is caused byDemand - Pull Inflation Demand - pull inflation

Inflation Demand - pull inflation(passive) is caused byInflation Demand - pull inflation

a decrease in the Aggregate Price Levelcausesa decrease in the Aggregate Price Level

to a larger real GDP ... but not a larger nominal GDPwill leadto a larger real GDP ... but not a larger nominal GDP

the price level to risecausesthe price level to rise

to an increase in real Gross Domestic Productmay leadto an increase in real Gross Domestic Product

to an increase in real GDP from Y1 to Y2leadsto an increase in real GDP from Y1 to Y2

the short - run aggregate market(passive) caused bythe short - run aggregate market

an increase in total output in the long runwill ... causean increase in total output in the long run

economic growth(passive) caused byeconomic growth

to a reduction in the interest ratecan leadto a reduction in the interest rate

a temporary decline in both output and inflationcausesa temporary decline in both output and inflation

real output to decrease and the price - level to increasecausesreal output to decrease and the price - level to increase

the DD curve to shift rightwill causethe DD curve to shift right

to his definitionledto his definition

Stagflationmay resultStagflation

to a fall in the general price level resulting in deflationwill leadto a fall in the general price level resulting in deflation

to lower spending for new goodswill leadto lower spending for new goods

to lower output and employmentwould leadto lower output and employment

to a surplus of goods and services resulting in a fall in the general price levelwill leadto a surplus of goods and services resulting in a fall in the general price level

to lower output and employment rather thanwould leadto lower output and employment rather than

to a decrease in price level and output in the short - runthus leadingto a decrease in price level and output in the short - run

to a decrease in price level and output in the short - runthus leadingto a decrease in price level and output in the short - run

an increase in unemploymentcausesan increase in unemployment

to a fall in the demand for labour in the economyleadsto a fall in the demand for labour in the economy

The recession(passive) was caused byThe recession

a recessionhas causeda recession

a recession in thecausesa recession in the

a recession(passive) is causeda recession

an increase in short - run unemploymentcan causean increase in short - run unemployment

to a lower price level AND a decrease in real productionleadsto a lower price level AND a decrease in real production

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Smart Reasoning:

C&E

See more*