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Evgen [1.6K]
3 years ago
7

Suppose net exports decreases by $100 million due to a slump in foreign economies. If the value of the multiplier is 2, what hap

pens to the domestic aggregate demand curve?
Business
1 answer:
iVinArrow [24]3 years ago
3 0

Answer:

It shifts to the left by $200 million at each price level

Explanation:

Given that,

Multiplier = 2

Net exports decrease by $100 million

Change in aggregate demand  is calculated as follows:

Multiplier = Change in Aggregate Income (ΔY) ÷ Change in Exports (ΔX)

2 = ΔY ÷ (-$100)

ΔY = -$200

Therefore, the national income will fall by -$200 and hence the aggregate demand will fall by -$200 . Hence, the aggregate demand curve will shift to the left.

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A minimum wage exists so that when people are looking up their career field they see what they should get paid.

Explanation:

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Answer:

$6,000

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In her research paper, Kirstein copied a few paragraphs from a renowned author's work verbatim without placing them within quota
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Answer:

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