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Alex777 [14]
3 years ago
12

How do future expectations of an improving economy affect aggregate demand

Business
1 answer:
Vanyuwa [196]3 years ago
3 0

Answer:

Increase the aggregate demand. This means, that the total demand for goods and services within a particular market will increase

Explanation:

The future expectations of an improving economy increase the aggregate demand. This means, that the total demand for goods and services within a particular market will increase as there is more trust in the market.

The rise in the income is another important factor for the aggregate demand to increase. With improving expectations the consumers will think that they income will improve and therefore their consumption levels.

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In the description provided, it can be said that Prime Cuts will be an addition to the company's product line in the dog food market. A product line is a group of related products all marketed under a single brand name and are sold by the same company to the same targeted group of consumers. Such as in this scenario, all of the products listed are dog treats/food with different ingredients and are all sold by the same company to people looking for dog food.

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