Business, 28.11.2019 02:31 eto911

The aggregate demand (ad) curve describes the overall demand for goods in the economy. it is paired with short-run aggregate supply (sras) to determine p and y(that is, you need both ad and sras to find the values of p and y) finally, changes in p and y are key things that we study: expansions, recessions, inflation, disinflation, and deflation. at least one (and perhaps more) of the following move one down along the ad curve (i. e., down vertically on the ad curve). which one or ones? this question address the important distinction between shifts of the ad curve and movements along the ad curve.
1. interest rates fall and forms increase investment
2. interest rates rise and firms decrease ivestment
3. firms produce more due to a higher prices for produced goods
4. firms produce less due to a higher prices for produced goods
5. firms cut production due to a higher price of oil (which is turned into gasoline for cars, kerosene for airplanes, and diesel for trucks)
6. firms increase production due to a lower price of oil (which is turned into gasoline for cars, kerosene for airplanes, and diesel for trucks)
7. prices fall and total spending rises
8. prices rise and total spending falls

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The aggregate demand (ad) curve describes the overall demand for goods in the economy. it is paired...

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