The determinants of aggregate demand are factors that can cause the curve to change, they include: O expectation, substitution, prices of related goods, prices of complementary goods, and factors of nature O real-balance effect, interest-rate effect, and foreign purchase effect. O consumer wealth, expectations, taxes, interest rates, government spending, and exchange rates. O include input prices and resource productivity.

The determinants of aggregate demand are factors that can cause the curve to change, they include: O expectation, substitution, prices of related goods, prices of complementary goods, and factors of nature O real-balance effect, interest-rate effect, and foreign purchase effect. O consumer wealth, expectations, taxes, interest rates, government spending, and exchange rates. O include input prices and resource productivity.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate price levels? Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. O Potentially the price levels have decreased to a lower aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have fired some employees as labor has become too expensive.
Moving along the aggregate supply curve, O A. technology advances. B. the quantity of capital used increases. OC. the real wage rate is constant. O D. only the price level changes. O E. the stock of human capital increases.
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Which of the following shocks would plausibly shift the quantity of automobiles supplied curve to the right? O A A revolution in drone technology allows for cheap, safe, reliable and convenient personal air travel. O B. Arevolution in materials allows cars to be built to their current specifications but for half the price. O C. Universal basic income is implemented increasing notably the wealth of every physical person over the age of 18. O D. The stock market collapses, wiping out billions of dollars in pension funds and personal savings.
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