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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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salantis [7]

Answer:

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Explanation:

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5 0
4 years ago
How will this be displayed in a journal entry? T-account?
nydimaria [60]

Answer:

Date         Account titles and description

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8 0
3 years ago
Read 2 more answers
If the exchange rate is 8 moroccan dirhams per u.s. dollars, a crate of oranges costs 400 dirhams in the moroccan capital of rab
strojnjashka [21]
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Natali5045456 [20]

Answer:

Journal Entry

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