1. Answer any 2 from a, b, and c belowa. Why does AD slope downward?b. Which is the one example that is used in the video to explain changes in C, I, G, and NX?c. Which 2 forces are different in shifting AD? DererrminantsConsumes Spendings (c)wealthConsumersConfidenceFexpectations,DebtTaxesAD,Investovents.CI)MPExpectations,risks l uncestainty, intemest detedCG)AD=C+ I t Ģ + MXGovernmentvasiableG,TPolicyCNX).NetExportExposts, Income aboad.Imports 01 AD-AS Model ADGĎD Deft¢ Aggoegate Dermand CAo)the5maysrelationstñpbetween PeYADwhy downward?Pt, t, YPurchasing Peowest, c:Wealth effect> 7: Interest zuteeffecditPorto.Nx 4: Exchange uteeffectAD1Dererminantsconsumes Spendings (c)wealthConsumers Confidence

Aggregate demand is an important component in determining the functions of the economy, it is the…

Answer any 2 from a, b, and c below a. Why does AD slope downward? b. Which is the one example that is used in the video to explain changes in C, I, G, and NX? c. Which 2 forces are different in shifting AD?

Answer any 2 from a, b, and c below a. Why does AD slope downward? b. Which is the one example that is used in the video to explain changes in C, I, G, and NX? c. Which 2 forces are different in shifting AD?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

1. Answer any 2 from a, b, and c below

a. Why does AD slope downward?

b. Which is the one example that is used in the video to explain changes in C, I, G, and NX?

c. Which 2 forces are different in shifting AD?

Dererrminants
Consumes Spendings (c)
wealth
Consumers
Confidence
Fexpectations,
Debt
Taxes
AD,
Investovents.
CI)
MP
Expectations,
risks l uncestainty, intemest deted
CG)
AD=C+ I t Ģ + MX
Government
vasiable
G,T
Policy
CNX).
Net
Export
Exposts, Income aboad.
Imports

01 AD-AS Model AD
GĎD Deft
¢ Aggoegate Dermand CAo)
the
5mays
relationstñp
between PeY
AD
why downward?
Pt, t, Y
Purchasing Peowest, c
:Wealth effect
> 7: Interest zute
effecd
it
Porto.
Nx 4
: Exchange ute
effect
AD
1Dererminants
consumes Spendings (c)
wealth
Consumers Confidence

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