increases in government spending are not very effective in offsetting real shocks because they shift the:

1 answer:

5 0

Increases in government spending are not very effective in offsetting real shocks because they shift the aggregate demand.

<h2>Definition of Aggregate Demand</h2>

Aggregate demand is the value of all requests for all types of goods and services produced in a certain period. The demand value contained in this aggregate will be expressed in terms of the overall value used for these goods and services up to a more specific price level and at a certain time period.

Some things that include aggregate demand are all consumer goods, capital goods used for the production process, import-export activities, and state government spending programs. Each of these variables will be considered the same as long as they are traded at the same market value.

This aggregate demand can also be calculated over a long period of time, which is often referred to as GDP or Gross Domestic demand. If this GDP will describe the total value and also the goods produced, then aggregate demand will represent the desire for goods and services.

Learn more about aggregate demand at brainly.com/question/29349235.

#SPJ4

You might be interested in

Profit motive and a sense of __________ act as powerful incentives for many entrepreneurs. A. power

dimaraw [331]

Is there anymore answers so i can help u? but i feel like it would be sense of humor.

7 0

3 years ago

Is the process of presenting a message to an audience, small or large?

alex41 [277]

The pracess of presenting a message to an audience is large

5 0

3 years ago

A Goldsmith could hold some gold in reserve for depositors’ withdrawals, but ________________ excess gold and thereby make a pro

den301095 [7]

Answer: Loan out

Explanation:

Goldsmith is one of the many traditional form of medium of exchange used in the past. Whereby you placed your gold to a goldsmith and in return receive a receipt to use that as a medium of cash exchange.

If goldsmith could loan out excess gold they can make a profit from depositors fund. Because that excess gold gives them an opportunity to loan it out.

7 0

3 years ago

The flow of money in transnational corporations is not balanced. this is true in two ways. explain

AleksAgata [21]

1. Because only 25% of the foreign investment went from MDCs to LDCs.

2. Money is not invested evenly among LDCs (most money went to China).

3 0

3 years ago

Fill in the Blank

Gnesinka [82]

Evidence of one's claim to authority or competence, such as a diploma, degree, certification, or license is known as the credential.

<h3>What is the evidence?</h3>

Evidence is the term that means to show or to prove that a particular thing is true or is in existence. For better understanding, a few illustrations can be taken. Like They found evidence of a robbery, in the room footprints of three persons present, and many more.

In any courtroom for making the case strong, one has to present evidence that is real like fingerprints, blood samples, DNA, a knife, a gun, and other physical objects.

There are basically two types of evidence, which include Oral and Documentary evidence. Documents that include electronic records are documentary evidence.

Thus, all the names given in the statement are of documentary evidence or credential.

Learn more about evidence from here:

brainly.com/question/6764645

#SPJ1

7 0

2 years ago