1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Darya [45]
4 years ago
11

According to the theory of new classical economics, if business sentiment and investment spending decrease, the aggregate demand

curve ________ and the price level falls, while aggregate output _________.
Social Studies
1 answer:
Oksanka [162]4 years ago
6 0

Answer:

The correct way to answer the question: According to the theory of new classical economics, if business sentiment and investment spending decreases, the aggregate demand curve: shifts to the left and the price level falls, while aggregate output: decreases.

Explanation:

The balance of an economy, anywhere in the world, is pretty complex thing. In order to understand both the short-term, and long-term ways in which the economy of a country may respond to different factors, but most especially to GDP, which is the measure of how much, and how well, a country is producing and supplying a demand for certain goods and services, it is necessary to understand both a theory known as the short-term Keynesian analysis and also the neoclassical theory of economics, which applies to long-term macroeconomics. In the case shown above, the point of start is the potential GDP, which will mark the real GDP of a country. The second point is the aggregate supply and demand markers that indicate how an economy is doing with respect to potential GDP. If investement is not placed into an economy, and business sentiment decreasese, it means that productivity will drop, and the aggregate demand curve turns to the left as many other factors are also driven down. Since aggregate output means the amount that is produced in goods and services, the lesser the business interest and spending, the lesser production there will be.

You might be interested in
What are the main sources of industry? ​
Neporo4naja [7]
Oxygen
.........::::::::::::
4 0
2 years ago
What bodies have the power to override a presidential veto?
kvasek [131]
Answer:  Congress (i.e., the <span>House of Representatives and the Senate).
______________________________________________________________</span>
7 0
3 years ago
Read 2 more answers
How many credits do you need to be a junior in high school in nyc?
Luda [366]
Well, I'm pretty sure a number of 60 credits is a junior level.
6 0
3 years ago
When asked which of two countries has a larger population, participants are likely to judge the country that is more familiar to
Elena L [17]

Answer:

answer is b or a

Explanation:

the answer has to be right

5 0
2 years ago
What part of the map tells you the distance
Zanzabum

Answer: the part of the map that tells the distance is the scale.

Explanation:

I hope this helps.!

3 0
3 years ago
Other questions:
  • What are the anti-terror laws in australia??
    12·1 answer
  • The middle of tectonic plates tend to have fewer mountains then locations near tectonic plate boundaries. What might be one poss
    11·1 answer
  • Please help me its due tomorrow.. I will make your answer the brainlest, also If I got your answers right I'm going to give you
    8·1 answer
  • Animals with which kind of behavior are most adaptable to change?
    15·2 answers
  • Eutrophication is caused by __________.
    15·1 answer
  • 1.7.2 Explain how the relevant strategy can be helpful if you are grieving loss of a loved one, also give an example of your exp
    5·1 answer
  • How did the social structure in Japan differ from the social structure in China?
    8·1 answer
  • Cynthia’s sister calls her from jail and tells her that her bail has been set at $3,000. She asks Cynthia if she can help her pa
    7·1 answer
  • What is the name of the region where the Nile River spreads out into the Mediterranean Sea? A. Delta B. Headway C. Spring D. Pla
    15·1 answer
  • Select the correct answer. under feudalism, which group was responsible for ruling different regions of a country? a. peasants b
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!