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gtnhenbr [62]
3 years ago
8

2.1 Changes in which factors could cause aggregate demand to shift from AD to AD1? What could happen to the unemployment rate? W

hat could happen to the inflation rate?

Computers and Technology
1 answer:
katrin [286]3 years ago
3 0

Answer:

There are many factors that cause aggregate demand to shift from AD to AD1. The unemployment rate will fall and inflation will increase.

<u>Explanation:</u>

A Shift in aggregate demand from AD to AD1 means there has been a  fall in demand. Various factors that cause demand to decrease are:

  1. Increase in price of a good itself
  2. Increase in the price of complimentary goods-This will lead to a fall in demand. Like ink and pen are complementary goods. if the Price of ink increases then demand for pen will decrease.
  3. A Decrease in the price of substitute goods-Like tea and coffee.
  4. Expectation regarding future fall in price

So due to the decrease in demand finally the unemployment will increase and with that, the inflation rate will increase making  things dearer.

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<h2>Answer:</h2><h2>============================================</h2>

//Class header definition

public class TestEven {

   

   //Method main to test the method isEven

   public static void main(String args[ ] ) {

       

       //Test the method isEven using numbers 5 and 6 as arguments

       System.out.println(isEven(5));

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   //Method isEven

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   public static boolean isEven(int number){

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}

====================================================

<h2>Sample Output:</h2>

=========================================================

false

true

==========================================================

<h2>Explanation:</h2>

The above code has been written in Java. It contains comments explaining every part of the code. Please go through the comments in the code.

A sample output has also been provided. You can save the code as TestEven.java and run it on your machine.

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