2. Nonprice-level determinants of aggregate demandThe following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right fromAD1 to AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion,where previously it was $300billion.PRICE LEVEL (CPI)170160150140130120110 +10090010004Taxes300, 140200300400 500 600 700 800REAL GDP (Billions of dollars)AD2The following table lists several determinants of aggregate demand.Consumer ExpectationsAD₁Complete the table by indicating the change in each determinant necessary to increase aggregate demand.Change Needed to Increase ADExpected Rate of Return on InvestmentIncomes in Other Countries?

Aggregate demand (AD): It represents the total amount of demand for all finished goods and services…

Complete the table by indicating the change in each determinant necessary to increase aggregate demand. Consumer Expectations Taxes Expected Rate of Return on Investment Incomes in Other Countries Change Needed to Increase AD

Complete the table by indicating the change in each determinant necessary to increase aggregate demand. Consumer Expectations Taxes Expected Rate of Return on Investment Incomes in Other Countries Change Needed to Increase AD

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Chapter1: Making Economics Decisions

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2. Nonprice-level determinants of aggregate demand
The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from
AD1 to AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion,
where previously it was $300
billion.
PRICE LEVEL (CPI)
170
160
150
140
130
120
110 +
100
90
0
100
04
Taxes
300, 140
200
300
400 500 600 700 800
REAL GDP (Billions of dollars)
AD2
The following table lists several determinants of aggregate demand.
Consumer Expectations
AD₁
Complete the table by indicating the change in each determinant necessary to increase aggregate demand.
Change Needed to Increase AD
Expected Rate of Return on Investment
Incomes in Other Countries
?

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