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]
3 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]3 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 was Pope Gregory trying to do with the Catholic Church?
Margarita [4]

Answer:

He is known for instigating the first recorded large-scale mission from Rome, the Gregorian Mission, to convert the then-pagan Anglo-Saxons in England to Christianity. Gregory is also well known for his writings, which were more prolific than those of any of his predecessors as Pope.

Explanation:

3 0
2 years ago
Which statements best complete the diagram of the steps in a federal civil case
sertanlavr [38]

Answer:

B.

Explanation:

Option B is the one that best completes the diagram of the steps that are involved in a federal civil case. In this example, we deal with a federal civil case. This involves a legal dispute between two or more people. The first step of the process requires one of the parties (plaintiff) to file a complaint against the other party (defendant). Afterwards, a trial takes place, and the judge and jury have to study the case. If charges are made, a reparation might be necessary. However, the losing party can appeal the decision if they feel it does not reflect justice.

4 0
3 years ago
Read 2 more answers
The Colony of Georgia lying about the same latitude with part of China, Persia, Palestine and the Madeiras, it is highly probabl
Zinaida [17]

They thought they could benefit from the area's warn climate and fertile soil.

8 0
3 years ago
Read 2 more answers
What is tourism products​
Lelechka [254]

Answer:

A tourism/tourist product can be defined as the sum of the physical and psychological satisfaction it provides to tourists, during their 'traveling and sojourn' en route at the destinations. ... Thus, whatever the natural and man-made resources, services brought about the consumption of tourists is called tourism products.

8 0
3 years ago
Which best explains the connection between tobacco and territorial expansion in the Chesapeake area?
tamaranim1 [39]

Answer:

It led to the rapid expansion of settled areas in the region

8 0
3 years ago
Read 2 more answers
Other questions:
  • Strengths of the Articles of Confederation and Weaknesses of the Articles of Confederation
    7·2 answers
  • __________ help sociologists make sense of social phenomena and understand important social issues.
    15·1 answer
  • Stacie listens to a radio commercial for toothpaste. she finds the soothing voice of the announcer appealing, so she buys the to
    13·1 answer
  • The president is elected to serve for how many years?
    8·1 answer
  • Effective studying is your most important tool to combat test anxiety. <br> a. True <br> b. False
    10·2 answers
  • The President’s role in international affairs has decreased since World War 2. True or false?
    10·2 answers
  • Many American Indians died during colonization after European settlers
    12·1 answer
  • Plzz help me I will give brainliest for correct answer.
    9·1 answer
  • Wheel are inherently a bounce of ___ pivoting around a fulcrum
    6·1 answer
  • Explain the from of power sharing​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!