Question: A boom may be caused by increase in aggregate demand in an economy. Explain how increase in aggregate demand leads to a rise in national

A boom may be caused by increase in aggregate demand in an economy. Explain how increase in aggregate demand leads to a rise in national income. (Using circular flow if income).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

24) During a recession, spending on ________ tends to fall more dramatically than spending on ________. A) nondurable goods; durable goods B) food; cars C) necessities; luxuries D) durable goods;...

ECON1A: Macroeconomics Final Exam: Chapter 8-10, 12, 13 Dr. Sung H. Kim Please do not write down anything on the test. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or...

ur email will be recorded when you submit this form If inflation were caused by a sudden increase in aggregate demand, then: 1 point real GDP would always increase. it would be costless because it...

BUSM Consider a household whose utility is determined by its consumption in periods 0 and 1. Let c0 and c1 denote the consumption in periods 0 and 1, respectively. The utility of this household can...

MACROENVIRONMENTAL ANALYSIS After in depth understanding of the macroenvironment analysis it's time for you to apply what you have learned. ANSWER THESE QUESTIONS: 1. If you are to make a law that is...

will you please answer my questions i just posted 6. Audit Considerations: a. What material types of transactions and transaction cycles are involved? b. What are the high-risk areas? c. What are the...

Question one. 3 An Anticipated Output Shock [30 points] Consider a two-period small open endowment economy populated by a large number of households with preferences described by the lifetime utility...

TASK: Make a PESTLE Analysis The new normal education was brought about by the Corona Virus pandemic. The new normal education is new to Filipinos. Assuming that Saint Louis University asked you to...

Please help...thank you! PART A - MULTIPLE CHOICE QUESTIONS 1. Real GDP is nominal GDP adjusted for: A) double counting. B) changes in prices. C) population. D) imports. 2. What do a rubbernecking...

:Answer all questions. case study: During most of the 20th century, wages in the United States were set not just by employers but by a mix of market and institutional mechanisms. Supply and demand...

When you go to a movie theater, you buy a pre-numbered ticket from the cashier. This ticket is handed to another person at the entrance to the movie. What kinds of irregularities is the theater...

This entire chapter has focused on the Steeles. If you have read it carefully, you should have a good understanding of their present financial situation and what they hope to accomplish in the...

18. NPV and Discount Rates (LO1) An investment has an installed cost of $684,680. The cash flows over the four-year life of the investment are projected to be $263,279, $294,060, $227,604, and...

A worldwide organization of academics claims that the mean 1Q score of its members is 112, with a standard deviation of 17, A randomly setected group af 40 members of this organization is tested, and...

Determine the change in entropy (in J/K) when 1.0 mol of gas at 25C and 1.00 bar in a 0.500 L container is compressed to 0.05 L and cooled to -25C. Report your answer to two significant figures and...

1.5 moles of carbon dioxide initially at 15C and 9 atm is placed in a cylinder with a cross-sectional area of 100.0 cm2. It is allowed to expand adiabatically against an external pressure of 1.0 atm...

The standard enthalpy of combustion of a given substance is - 422 kJ/mol at 25C. At the same temperature, the standard entropy of the same given substance is 123 J/(mol-K). Based on the information...

Select a company in a specific industry. In your initial post, address the following: What company have you selected and in which industry? Put your company and industry in the subject line. What is...

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

5. What do we mean when we say that social facts are mental constructions? Explain this with an example from your own everyday life.

4. What is meant by the following statement, What we take for granted in a social situation may actually prove to be mechanisms that govern how we evaluate and act in the situation?

6. What is meant by the following statement, the methods used to uncover (construct) reality guide our thinking and actions in relation to this reality?