1) An sum up in amount of money demand causes the equilibrium price train to rise and equilibrium outfit (real GDP) to adjoin. (Shift right)
a. A decrease in aggregate demand causes the equilibrium price direct to decline10
b. As aggregate demand falls, un workplace rises, and GDP declines
2) An add-on in aggregate supply will cause real output to broaden (GDP) and the price level to fall. (Shift right)
a. amplification in input be would shift the aggregate supply to the go away resulting in a GDP decline and augment in price level (Shift left)
b. a
3) During recessions, potential output (GDP) will exceed actual output (GDP)
4) Recession is defined as falling GDP and rise unemployment
5) Most expository set of fiscal policy is increase in government purchases and decrease in taxes
6) If the dollar gains in value, net exports will suffer as US goods becomes much expensive, aggregate demand will decrease. The supply of foreign goods should increase as imports become cheaper.
7) At business cycle peak, highest gunpoint of economic activity. Firms likely face capacity constraints and labor shortages.
8) Increase in resources in the economy will be loose of producing more goods and services.
9) Real GDP per capita is real GDP separate by population, measure used to compare standards of living across countries
B2 Topic 2 Economic Measures/Indicators
1) Aggregate demand increase (shift right) and aggregate supply decrease (shift left) lead to the most inflation
a. monetary value Push inflation caused by a shift left in aggregate supply
b. Demand Pull inflation caused by a shift right in aggregate demand
2) Unemployment
a. geomorphologic Individuals do not have qualifications or skills necessary to subscribe to available jobs
b. Cyclical None at ample employment caused by business cycles
c. Frictional...If you want to get a full essay, order it on our website: Ordercustompaper.com
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