In 2013, Prussia's aggregate demand curve was determined by the equation M + = 8% A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation M + = 5% Using this information, draw Prussia's old and new dynamic aggregate demand (AD) curves on the graph. Inflation rate 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 -4 -3 -2 -1 Show Trans AD 2013 0 Real GDP growth rate AD 2014 1 2 3 4 5 6 7 8 9 10 decreased consumer confidence an improvement in technology increase in real wages Answer Bank riots and political instability increased government spending an increase in imports Which of the three factors could have resulted in the change in aggregate demand seen between 2013 and 2014? Assume that this is a typical economy that uses inputs, such as coal and oil. Answer Bank an increase in exports decreased investor confidence oil price increase
In 2013, Prussia's aggregate demand curve was determined by the equation M + = 8% A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation M + = 5% Using this information, draw Prussia's old and new dynamic aggregate demand (AD) curves on the graph. Inflation rate 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 -4 -3 -2 -1 Show Trans AD 2013 0 Real GDP growth rate AD 2014 1 2 3 4 5 6 7 8 9 10 decreased consumer confidence an improvement in technology increase in real wages Answer Bank riots and political instability increased government spending an increase in imports Which of the three factors could have resulted in the change in aggregate demand seen between 2013 and 2014? Assume that this is a typical economy that uses inputs, such as coal and oil. Answer Bank an increase in exports decreased investor confidence oil price increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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