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.

6 0

3 years ago

Which social group is an example of a deviant subculture? a class of students a group of drug users a group for working professi

Taya2010 [7]

Deviant subcultures--groups that develop values and norms considered outside the culture of the dominant population; examples of deviant subcultures include some musical groups, youth gangs, alternative<span> lifestyles, and </span>nontraditional religious<span>communities.</span>

3 0

2 years ago

Read 2 more answers

Gina smokes two packs of cigarettes a day, but lately she has begun to seriously think about quitting. According to the transthe

Lostsunrise [7]

Answer:

Contemplation

Explanation:

The transtheoretical model is also referred to as TTM and is a model that is based on behavior change. It states that a person goes through six distinct stages of behavior change in his or her life including maintenance, preparation, precontemplation, action, contemplation, and termination.

Contemplation stage: The contemplation stage is defined as the stage in which an individual tends to change or alter within six months. The person is generally aware of the positive aspect of the change and at the same time, he or she is aware of the negative aspect of the change.

4 0

3 years ago