The factors that change (i.e., SHIFT) aggregate demand (AD) include each of the following except: O Expectations about the future. ◇ Fiscal policy and monetary policy. O Potential GDP changes. O The state of the world economy.

Use the following graph to answer the next question. AS, Price Level CF E Multiple Choice AS O. A B C Real Domestic Output A shift of the aggregate demand curve from AD₁ to ADo might be caused by a(n) AD₁ Increase in aggregate supply. AD decrease in the amount of output suppiled. Increase in Investment spendling. decrease in net export spending.

(s) possIDle The quantity of real GDP supplied decreases if the price level because it profits. A. rises; decreases B. falls; decreases C. rises; increases D. falls; increases O E. None of the above answers are correct because the AS curve is vertical so that the quantity of real GDP supplied does not change when the price level changes. ООО оо

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The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD¡ 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, wwhere previously it was $300 billion. 170 100 150 140 130 120 AD2 110 AD, 100 00 + 100 200 300 400 500 00 700 800 OUTPUT (Billions of dollars) The following table lists several determinants of aggregate demand. Complete the table by indicating the change needed in each determinant to increase aggregate demand. Change Needed to Increase AD Wealth Тахes Expected rate of return on investment Incomes in other countries PRICE LEVEL

14. What does it mean when the economy is in a recession? Slowdown in economic action, price level lowers. O Raise in economic action, price level raises. O When the government gives out programs to assist the people living in an area. O When the government creates more rules for businesses in one area.

Suppose the economy of the hypothetical country “X” is currently in equilibrium at point A on thegraph. There were two major shocks to the economy in 2020.First shock was related to oil prices; the other was related to consumer confidence about futurebusiness conditions. Oil Shock: The economy X faced a rise in the average price of oil along with the rise of world price ofoil.E) Would an increase in oil prices cause a demand shock or a supply shock? Redraw the diagram toillustrate the effect of this shock by shifting the appropriate curve. What happens to theAggregate output and price level after the shock? (3)F) If policymakers wish to prevent the equilibrium output from changing in response to the oilprice increase, should they use contractionary or expansionary fiscal policy? (Redraw the graphfrom part E and show the change) (4)G) Even if the economy moves back to original Aggregate output, will there be any drawback? (1)Consumer Confidence Index: The Consumer Confidence Index…

Pls select the correct option and explain it..

Variations of actual real GDP around potential real GDP are called economic fluctuations. What is another name for these fluctuations? Select one: O a. Economic growth O b. Trade surpluses O c. Income variations O d. Business cycles Check

Scenario FROQ In 2019 the federal government decreased interest rates for banks three times. Shortly after, POTUS tweeted the following Would be so00 great if the FED would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom! December 17, 2019 A. Define the type of economic policy inferred by scenario and describe how it impacts the economy. B. Describe why POTUS has no power to control the implied power inferred to by the scenario above. C. Describe how a change in political party leadership could effect the outlined scenario above.