3. Determinants of aggregate demand The graph below is associated with a hypothetical country. Consider an...

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3. Determinants of aggregate demand The graph below is associated with a hypothetical country. Consider an increase in aggregate demand (AD). Specifically, aggregate demand shifts to the right from AD₁ to AD₂, causing the quantity of output demanded to rise at each price level. For instance, at a price level of 140, output is now $400 billion, where initially it was $300 billion. PRICE LEVEL 170 160 150 140 130 120 110 100 90 0 100 +--+ 200 I I 1 1 1 300 400 500 OUTPUT (Billions of dollars) AD₂ 2 AD₁ 600 700 800 (?) The following table lists several determinants of aggregate demand. Fill in the missing values in the table by selecting the change in each scenario required to increase aggregate demand. Change Required to Increase AD Expected rate of return on investment Incomes in other countries Consumer expectations about future profitability Government spending 3. Determinants of aggregate demand The graph below is associated with a hypothetical country. Consider an increase in aggregate demand (AD). Specifically, aggregate demand shifts to the right from AD₁ to AD₂, causing the quantity of output demanded to rise at each price level. For instance, at a price level of 140, output is now $400 billion, where initially it was $300 billion. PRICE LEVEL 170 160 150 140 130 120 110 100 90 0 100 +--+ 200 I I 1 1 1 300 400 500 OUTPUT (Billions of dollars) AD₂ 2 AD₁ 600 700 800 (?) The following table lists several determinants of aggregate demand. Fill in the missing values in the table by selecting the change in each scenario required to increase aggregate demand. Change Required to Increase AD Expected rate of return on investment Incomes in other countries Consumer expectations about future profitability Government spending

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Determinant of AD Change Required to Increase AD Expected rate of return on investment Increase This ... View the full answer