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Alenkasestr [34]
3 years ago
10

The federal government tends to increase their spending to get the economy out of recessions. Explain the expected impact on eac

h of the components of aggregate demand due to this and the mechanism through which this operates.
Business
1 answer:
RoseWind [281]3 years ago
4 0

Answer:

Aggregate demand (AD) refers to the total demand for goods and services in an economy in an economy at a given price level.

Components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M).

During the recession, the government can affect aggregate demand by increasing their fiscal expenditures and reduce taxation which is known as Fiscal policy.

Expansionary fiscal policy affects aggregate demand through an increase in government spending and a reduction in taxation. Those factors influence employment and increase household income, which then impacts consumer spending and investment

Fiscal policy determines government spending and tax rates. Expansionary fiscal policy, usually enacted in response to recessions or employment shocks, increases government spending in areas such as infrastructure, education, and unemployment benefits.

Explanation:

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Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have r
inysia [295]

Answer:

An increase in taxes.

Explanation:

A rise in the prices is indications that the inflation rate is high.  Policymakers should intervene by introducing contractionary measures that will counter the rising inflation. Fiscal policy measures, such as increasing taxes, reduce inflationary pressures without the risk of causing a recession.

Increase taxes reduces the purchasing power of businesses and individuals, thereby reducing the aggregate demand.  A reduction in aggregated demand lowers production levels, which results in low inflation but increases the unemployment rate.

6 0
4 years ago
Mackey believed that quality of life is a very important consideration, so much so that Whole Foods’ lobster tanks are kept at o
SpyIntel [72]

Answer:

The correct answer is letter "D": a CSR.

Explanation:

Corporate Social Responsibility (CSR) is the set of actions companies take that go beyond their regular operations to ensure consumers' satisfaction and benefit society as a whole. Taking care of their inner and outer environment is a clear example of CSR.

In particular, <em>because of the business Whole Foods is dedicated to, keeping their foods in proper conditions to facilitate the purchase of their consumers and avoid food contamination represents their CSR.</em>

5 0
3 years ago
A fall in the value of the dollar againstother currencies makes U.S. final goods and services cheaper toforeigners even though t
Mars2501 [29]

Answer: I am right, the increased demand represents a rightward shift of the aggregate demand curve.

Explanation:

The increase in aggregate demand by foreigners occurred as a result of a fall in the value of the US dollars and aggreagrate price level stayed the same. Therefore, the change in aggregate demand didn't occur as a result of a change in price.

If agregrate demand changed as a result of a change in the aggregate price levels, there would be a change in quantity demanded and a movement along the demand curve.

It's only a change in price that result results in a movement along the aggregate demand curve.

Other factors that leads to a change in demand either shifts the aggregate demand curve to the left or to the right.

Therefore, an increase in aggregate demand as a result of the fall in value of US dollars causes the aggregate demand curve to shift to the right.

The shift in the aggregate demand curve to the right shows that demand has increased but aggregate price hasn't changed.

5 0
3 years ago
If fair use applies, it is not necessary to cite the sources of the visual and audio materials in your slide show.
Minchanka [31]
This statement is false.
Regardless of the fact whether fair use applies or not, you should always cite  the sources of the visual and audio materials in your slide show. It can still be considered plagiarism if you don't cite your sources, so make sure you do that.
5 0
3 years ago
A company's ad for a deodorant brags that it's the top deodorant among major league baseball players. Which positioning strength
Vilka [71]

Hello, I am The Human Spider!!

Answer: B.) Product Association

Note: If I am wrong I will answer again.

~

Your Answering Friend

The HumanSpider!!

4 0
3 years ago
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