Classify the events according to their impact on aggregate demand (AD).

1. A dramatic decline in the average price of houses will _____________.
2. Increased concern that a recession is looming will _____________.
3. An announcement by the central bank to maintain its existing monetary policy will _____________.
4. A reduction in government spending will _____________.
5. A dramatic improvement in the stock market, causing investors' wealth to rise, will _____________.
6. A recession occurring in a trading partner's economy will _____________.
7. An increase in income tax rates on individuals earning more than $450,000 per year will _____________.

WORD BANK
not change AD.
increase AD.
decrease AD.

Answers

Answer 1

Answer:

1. decrease AD.

2. decrease AD.

3. not change AD.

4. decrease AD.

5. increase AD.

6. decrease AD.

7. decrease AD.

Explanation:

Aggregate demand (AD) measures the total amount of spending that occurs in an economy and can be segmented into consumption spending, government spending, investment spending, and net exports. A key principle in this example is that AD increases when there are increases to any of these individual components of AD and decreases when the individual components decrease.

Several of the events in this example describe direct changes in the components of AD:

    - A reduction in government spending leads to a decline in AD as it is associated with fewer goods and services being purchased.

    - An increase in tax rates reduces disposable income and therefore causes consumption spending to decline.

    - When recessions occur abroad, foreigners purchase fewer imported items. (e.g., a recession in Europe means that American firms will export less to Europe.) Thus, net exports decline as trading partners experience recessions, which causes AD to fall.

    - Consumer confidence also impacts spending in that people are more inclined to make purchases when feeling optimistic and more inclined to save when feeling concerned about the economy.

    - Wealth is another factor that affects AD. People buy more goods and services when they have more wealth and vice versa. Therefore, an increase in wealth associated with rising stock prices increases AD, whereas falling wealth from declining housing prices reduces AD.

    - Changes in the money supply also can lead to AD shifts. When the money supply grows more rapidly, there are increases in spending and the AD shifts to the right, and vice versa. In this example, growth in the money supply is said to be stable, implying that AD will neither increase nor decrease.


Related Questions

Philosophy of Mind studies only the brain and
how it affects the body and the outside physical
world.
O True
False

Answers

Philosophy of mind is the philosophical study of the nature of the mind, mental events, mental functions, mental properties, and consciousness, and of the nature of their relationship with the physical body: the so-called mind-body problem.

No, the philosophy of Mind does not studies only the brain and how it affects the body and the outside physical world. So, the correct answer is False

A subfield of philosophy called philosophy of mind investigates the nature and ontology of the mind as well as how it interacts with the body. The hard problem of consciousness and the nature of particular mental states are addressed, but the mind-body dilemma is a paradigmatic topic in philosophy of mind. The mind's ontology, the nature of cognition and thought, and the connection between the mind and body are some of the aspects of the mind that are being explored. Other aspects of the mind that are being examined are mental events, mental functions, and mental qualities.

The brain is not the only element that is explored in the philosophy of mind, but it is unquestionably a significant component.

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please help this is kinda simple but need help.

Answers

Answer:

A Grow and develop

C are made of many cells

E can reproduce

Explanation:

how to make people to follow rules​

Answers

Answer:

[tex]There \: is \: a \: way \: to \: follow \: rules \: effectively \\ without \: resorting \: to \: breaking \: them.[/tex]

Be guided by values. Values are the principles that guide our behaviour, attitudes and actions. ...Tweak the rules to suit you. Sometimes we follow rules too strictly because we are afraid to question them. ...Simplify. ...Be Authentic. ...Conclusion.

. What are subjective interpretations

Answers

Something that is subjective is based on personal opinions and feelings rather than on facts

This is a massive ball of plasma that shines because of thermonuclear fusion

Answers

Answer:

star

Explanation:

huge ball of ionized gas (plasma) producing energy (light) by nuclear fusion. The visible surface of the sun (photosphere) is ~5700K. An object at this temperature emits most of its. energy as visible light

webpdxedu

Why do consumers have to make choices when spending their income

Answers

Answer:

They have to make choices because:

Generally, consumers are trying to get the most for their limited budget so must make wise choices to get the most out of their income.To be able to get the best-quality goods to suit their preference when buying.To avoid impulse buying.To avoid wastage of money due to impulse buying & improper planning.To get maximum number of items when buying,despite price increase.

Every modern nation uses a central
bank. Which of the following is NOT an
example of a central bank?

A. Royal Bank of Japan
B. Bank of Canada
C. Bank of Mexico

Answers

Answer: A. Royal Bank of Japan

Explanation: Note that the word "Royal" is used. In the other two, there are no words like Royal, and only have the countries name and states that their a bank. Most central banks are like that. I hope this helps.

What items does the United States often export to other countries? •


-helicopters and airplanes
-chocolate and coffee
- rice and pineapples
-electronics and coffee​

Answers

The items that United States often export to other countries includes:

helicopters and airplaneschocolate and coffeeelectronics and coffee​

What is an Export good?

These are goods that are produced for exportation to another country.

The exportation of goods is a good sign that an economy is performing well because its increase the economy Gross Domestic Product.

Therefore, the Option A, B and D is correct.

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Answer:

Helicopters and airplanes

Explanation:

I did the test.

Collaboration with Congress during the Clinton administration allowed for an aggressive deficit‑cutting plan to pass. At the end of the 1990s, Congress eliminated the government deficit. Manipulate the graph to illustrate how the elimination of the deficit affects the loanable funds market.

What does the model predict will happen to the quantity of private investment as a result of elimination of the government deficit? Private investment will _________.
a. decrease because the cost of borrowing decreases.
b. increase because the cost of borrowing increases.
c. decrease because the cost of borrowing increases.
d. increase because the cost of borrowing decreases.

Answers

Answer:

d. increase because the cost of borrowing decreases.

Explanation:

A government deficit means that tax collections amount to less than government spending during a fiscal year. This difference is covered through government's public debt, reducing national savings. So, when the U.S. government reduces its borrowing, it increases national savings and the supply of loanable funds in the U.S. market.

Thus, the supply for financial capital shifts to the right, allowing private market participants to borrow at a lower interest rate. The lower cost of funds means that participants can finance private investment at a lower cost, increasing the amount of private investment.

how was Nepal named on the basis of race​

Answers

Answer:

In Tibetan Language 'Ne' means home and 'pal' means 'wool'. Sheep were reared in Kathmandu Valley once upon a time. Hence Nepal- the land of the wool.

Explanation:

ur welcome

One of the influences associated with the development of borderline personality disorder is Group of answer choices deficits in neurotransmitter circuits involving dopamine. parental alcoholism. history of child abuse or neglect. developmental delay for major milestones (i.e., walking, talking).

Answers

One of the influences associated with the development of borderline personality disorder is a history of child abuse or neglect.

What is a Personality Disorder?

This refers to those psychological disorder where the individual has an unhealthy pattern of thinking and behavior.

Hence, based on a recent study, it was found that there was a link between individuals who had borderline personality disorder as also having childhood abuse or trauma.

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Fill in the blanks with the correct world/s to complete the statement. write your answer on a separate sheet of paper

Answers

The answer to the question is..

I have no clue, because you didn’t state the question

Which of the following statements is true about water access in the Middle East?
A. Access to coastal waters is not important to people.
B. Most countries depend on outside resources for water.
C. Water is available in large supplies in all countries.
D. All countries have sources of renewable freshwater

Answers

Answer:

B   hope this helps you

Explanation:

Answer:

B

Explanation:

What kind of school is best for teenagers ?

Answers

vocational, charter, or other less traditional public school

How did Aksum rise to power?
'

Answers

Answer:

under the leadership of King Ezana

Explanation:

Aksum reached its peak under the leadership of King Ezana who ruled from around 325 CE to 360 CE. During this time, Aksum expanded its territory and became a major trade center. It was under King Ezana that Aksum conquered the Kingdom of Kush, destroying the city of Meroe. King Ezana also converted to Christianity.

What factors led to a general decrease
in the length of residence requirements among the
States?

Answers

Explanation:

Abstract

BACKGROUND:-

cardio metabolic risk (CMR) factors including hypertension overweight obesity diabetes mellitus and hyperlipidemiaaa raha hai among United States ethnic minorities and the immigrantpopulation continuous to burgeon.

hope u help ful

Cardio Metabolic Risk (CMR) factors, such as hypertension, overweight obesity, diabetes, and hyperlipidemia, continue to rise among American ethnic minorities and immigrants.

What is Cardio-Metabolic Risk (CMR)?

There are a number of risk variables that operate as predictors of someone's propensity to acquire diabetes or cardiovascular disease (CVD). Finding these risk factors is especially crucial because many of the disorders that lead to diabetes and cardiovascular disease may be treated or lessened. These cardiometabolic risk factors (CRF) include prediabetes, high blood pressure, raised triglycerides, low HDL (good) cholesterol, and low HDL (good) cholesterol levels.

Risk factors for thrombosis include irregular blood clotting, abdominal obesity, and thrombosis. Blood testing and physical examinations are used to evaluate a person's cardiometabolic risk. Blood tests are specifically used to monitor a person's glycemic control, lipid profile, and vascular health.

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Elections are life-blood of democracies.
Discuss.



Answers

Engaging in elections is the only way that a democracy can survive which makes the above statement factual.

How do elections aid democracy?

Democracy is based on the basic notion that the citizens of a nation should get a say in how their country is run by deciding their own leaders.

The only way citizens can be able to decide who will lead them, is by holding elections. Without elections therefore, there can be no democracy because the people would be unable to decide who would lead them.

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Match the terms from Unit 5 with their definitions.

Question 1 options:

Heat energy from the sun that travels through space and is absorbed by Earth.


A description of the atmosphere providing the temperature, precipitation, and cloud cover which can change day to day.


Invisible lines that run east to west, parallel to the equator. The most important factor affecting climate.


Air masses meeting at boundaries which can produce severe weather.


The layer of the atmosphere closest to the earth, with the greatest air pressure and where most weather takes place.


Lines of equal pressure that show pressure patterns across an area on a weather map.


Long-term weather patterns based on average temperatures, precipitation, altitude, latitude and ocean currents.


Horizontal air movement due to the differences in air pressure.


A large section of air that has an even temperature, humidity, air pressure, and carries its own weather.


The atmosphere's most abundant gas.

1.
Latitude

2.
Troposphere

3.
Radiation

4.
Longitude

5.
Exosphere

6.
Conduction

7.
Air Masses

8.
Wind

9.
Weather

10.
Climate

11.
Fronts

12.
Oxygen

13.
Nitrogen

14.
Isobars

Answers

The match has been created for the items that we have here

How to match the items

Latitude: Invisible lines that run east to west, parallel to the equator. The most important factor affecting climate.

Troposphere: The layer of the atmosphere closest to the earth, with the greatest air pressure and where most weather takes place.

Radiation: Heat energy from the sun that travels through space and is absorbed by Earth.

Longitude: Imaginary lines that run north to south, perpendicular to the equator.

Exosphere: The outermost layer of the atmosphere.

Conduction: The transfer of heat through direct contact between two objects.

Air Masses: Large sections of air that have an even temperature, humidity, air pressure, and carry their own weather.

Wind: Horizontal air movement due to the differences in air pressure.

Weather: A description of the atmosphere providing the temperature, precipitation, and cloud cover which can change day to day.

Climate: Long-term weather patterns based on average temperatures, precipitation, altitude, latitude and ocean currents.

Fronts: Boundaries between air masses that can produce severe weather.

Oxygen: The atmosphere's second-most abundant gas.

Nitrogen: The atmosphere's most abundant gas.

Isobars: Lines of equal pressure that show pressure patterns across an area on a weather map.

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I can see it when social studies has been done but I don’t think you can do it

Answers

what do you mean, do what? are you trying to do something on a website

Suppose that the policy-makers of a foreign country decide to enact policy that reduces unemployment (at the expense of higher prices) just before an election. At the time of the election, however, the reduction in unemployment is much greater than expected, and the pesky inflation increase never occurs.

The graph illustrates the economy before the government attempts to reduce unemployment. Change the graph to illustrate changes in the economy that could result in lower unemployment without an increase in prices.

Note that LRAS represents long-run aggregate supply, SRAS represents short-run aggregate supply, and AD represents aggregate demand.

Answers

Answer:

*see image*

Explanation:

The tool available to the policy-makers that would have resulted in a (short-run) decrease in the unemployment rate is an increase in aggregate demand.

Had nothing unexpected happened, unemployment would have fallen in the short run, and the price level would have risen in both the short and long run. However, that bump in inflation never happened, and a greater-than-expected fall in the unemployment rate occurred. The only unexpected shift that could have caused this is a rise in SRAS.

The SRAS curve shift alone would have resulted in lower (short-run) unemployment and less inflation than would have occurred otherwise (or possibly even deflation). An AD shift of the right size, occurring at the same time as the SRAS shift, would have resulted in no change in the inflation rate and even less unemployment. Depending on the relative sizes of the SRAS and AD shifts, an unexpected fall in AD paired with the increase in SRAS could have led to this result as well.

Following World War 2, why did nations create alliances like NATO around the globe? A. Communist and democratic nations did not trust each other. B. Nations began another world conflict that included fighting. C. Communist and democratic nations worked together for world peace.
D. Many nations wanted to gain economic independence.

Answers

Answer:

D. many nations wanted to gain economic independence

why should you be aiming to achieve a bachelors pass regardless of what you plan?​

Answers

Answer:

Because it is always a clever idea to have a backup plan. You can go to university with a bachelor's degree.

I hope this helps you

:)

Write advantages of population in 6 points..​

Answers

Answer: Having a larger population can help run a better and more stabilized government. They can have more votes and more points to prove to their cause. The economy works better, like there's more people to do more work. There is more of a fighting force. Like more people to draft to a military or otherwise forceful group. There is a higher demand in industries of certain types that more people would help.

Explanation:

Explanation:

Refers to any process that aims at describing phenomena by using any instrument or device however the results may be used as a control tool.

what is the most serious threat to biodiversity

Answers

Answer: Climate change was ranked as a 6% risk to Earth's biodiversity. WWF's Living Planet Report 2020 has ranked the biggest threats to Earth's biodiversity. The list includes climate change, changes in land and sea use and pollution. The WWF used data from over 4,000 different species.


Explanation:

I hope that that’s the answer you were looking for

The short-run macroeconomic model is very similar to the standard model for markets. In what ways are these two models similar?

Answers

Answer:

Explanation:

Slope of demand curve is negative and slope of supply curve is positive in both the models.

But labeling of axis is different in both the models. In the short-run macroeconomic model, y-axis represents the price level whereas x-axis represents the GDP.

While in the standard model for markets, y-axis shows the general price level whereas x-axis represents the output level.

Which of the following is an example of an automatic stabilizer?

Spending on unemployment benefits falls when the economy enters a recession.

The amount of tax revenues collected rises when an economy is booming.

Low-income households lose their food stamp benefits when unemployment rises.

Governments debate implementing tax cuts when the economy is in a recession.

Answers

B. The amount of tax revenues collected rises when an economy is booming.

Automatic stabilizers are spending and taxation changes that automatically expand or contract so as to temper business cycle fluctuations without any over action by the government. Automatic stabilizers include unemployment benefits and food stamps, which increased during down curns, and the income tax, which fluctuates with income.

Which term refers to a nation's transportation and communications networks, power generating facilities, educational institutions, and legal, economic, and financial systems?
a. capital stock
b. infrastructure
c. public sector
d. utilities

Which statement is not true?
a. Price signals distorted by extreme inflation or deflation lead to uncertainty and lower the ability of citizens to make good decisions.
b. Countries with relatively large public sector shares in the economy have the highest growth rates in GDP per capita.
c. Establishing and protecting property rights are key elements that promote economic growth.
d. The legal enforcement of contracts promotes economic growth.

Answers

Answer:

b. infrastructure

b. Countries with relatively large public sector shares in the economy have the highest growth rates in GDP per capita.

Explanation:

The capital stock refers to physical, tangible capital assets, and utilities refer to services like power, water, communications, etc.

The public sector refers to the resources under the government's control as opposed to private citizens.

All of these are part of the more general infrastructure, which also includes other things that determine how well an economy functions.

Property rights, enforceable contracts, and stable prices all contribute to economic growth. The conventional wisdom now is that more economic freedom, as opposed to public sector programs, leads to higher growth rates.

whats the definition of isthmus

Answers

Answer:

a narrow strip of land with sea on either side, forming a link between two larger areas of land.

Anatomy: a narrow organ, passage, or piece of tissue connecting two larger parts.

Which phrase best describes the ottoman Empire

Answers

Answer:

C. A turkish islamic kingdom that defeated the Byzantine empire

Explanation:

Including the full list of answers,

Which phrase best describes the Ottoman Empire?

A. A Persian Islamic kingdom that fought the Turks

B. An Indian Islamic kingdom that was tolerant toward Hindus

C. A Turkish Islamic kingdom that defeated the Byzantine empire

D. A mongol Islamic kingdom that conquered most of China

C is the answer

Please use the graph to answer the given questions. Assume the people act rationally.

1. Which of the statements best describes a situation represented by point A?
a. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it.
b. Jeff agrees to lend money to his brother, who plans to use the funds to open a shoe store.
c. Janine predicts that, if she borrows to expand operations, she will earn a rate of profit higher than the interest rate of the loan. So, she decides to take out the loan.
d. Carly decides against purchasing a corporate bond because she has another investment opportunity that returns 14%.

2. Given the market conditions, what will be the prevailing interest rate?
a. 14%
b. 2%
c. 18%
d. 6%
e. 10%

3. Given the market conditions, how much will be available in loanable funds?
a. $70 billion
b. $10 billion
c. $90 billion
d. $30 billion
e. $50 billion

Answers

Answer:

a. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it.

e. 10%

e. $50 billion

Explanation:

Point A represents a situation in which projects that promise a rate of return lower than the prevailing interest rate will not be funded.

Since Wayne's expansion of his gym franchise promises a return which is lower than the interest rate he would have to pay, he will not choose to expand. This scenario aligns with point A. Each of the three remaining scenarios also correspond to a quadrant on the graph.

Janine decides to take out a loan and expand because she projects a rate of return higher than the interest rate, represented by the demand curve above equilibrium (the upper left).

Jeff providing a loan to his brother indicates that the expected return is higher than the interest rate the brother will be paying Jeff. Jeff's situation is represented by the supply curve below equilibrium (the lower left). Recall that for supply/demand graphs, the area below the demand curve and above the supply curve to the left of the equilibrium point is total surplus because exchanges are being made between the buyers and sellers.

Lastly, Carly deciding whether or not to purchase a corporate bond is equivalent to her deciding whether or not to provide a loan to the corporation issuing the bond. Her decision not to buy is due to her unwillingness to accept an interest rate below 14%, and thus she is represented by the supply curve above equilibrium (the upper right).

The market for loanable funds operates much as a normal supply and demand model, with the interest rate on the vertical axis (the price of borrowing) and quantity of loanable funds on the horizontal axis. In order to determine the market interest rate and quantity of available loanable funds, you must find the equilibrium point for the market supply and demand curves. Using the information presented in the graph, you can see that the prevailing market interest rate is 10% and there are $50 billion in loans made.

1. a. Wayne projects that if he takes a loan to open another gym franchise, he will earn  lower return than the interest rate he would have to pay, he decides against it.

2. e. 10%

3. e. $50 billion

What is the situation represented by the graph?

Projects that guarantee a return that is less than the going interest rate won't be funded, as shown by Point A.

Wayne won't decide to expand his gym chain since the return it promised is less than the loan rate he would have to pay. This situation fits point A. The graph's remaining three situations are similarly each represented by a quadrant.

Because Janine anticipates a rate of return greater than the interest rate, which is indicated by the demand curve above equilibrium, she decides to take out a loan and grow (the upper left).

The market for loanable funds functions similarly to a standard supply and demand model, with the quantity of loanable funds on the horizontal axis and the interest rate on the vertical axis (the cost of borrowing). You must locate the equilibrium point for the market supply and demand curves in order to ascertain the market interest rate and the amount of loanable funds that are readily available.

You can see from the graph's data that there are $50 billion in loans made and a market interest rate of 10% is currently in effect.

Hence, the appropriate responses are option a, option e, option e respectively.

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