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Which of the following would cause an increase in aggregate demand in the short run Quizlet

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Which of the following would cause an increase in aggregate demand in the short run Quizlet

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Which of the following would cause an increase in aggregate demand in the short run Quizlet

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Which of the following would cause an increase in aggregate demand in the short run Quizlet

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What would cause an increase in aggregate demand in the short

An increase in government purchases boosts aggregate demand from AD1 to AD2. Short-run equilibrium is at the intersection of AD2 and the short-run aggregate supply curve SRAS1. The price level rises to P2 and real GDP rises to Y2. In contrast, a reduction in government purchases would reduce aggregate demand.

Which of the following will cause an increase in aggregate demand?

A decrease in taxes, an increase in government spending, or an increase in the money supply will result in an increase in aggregate demand. 9. d. Initially, the shift from c to b equals the decrease in government spending.

Which of the following will cause short

The correct option is b. Capital is one of the factors of production and a reduction in the price of capital makes a decline in the production cost of firms. As a result, a decline in the production cost causes the short-run aggregate supply to increase and shift rightwards.

What causes an increase in aggregate demand quizlet?

An increase in Total Expenditures will cause an increase in aggregate demand, causing a shift to the right. What causes the aggregate demand curve to shift to the left? A decrease in Total Expenditures will cause a decrease in aggregate demand, causing a shift to the left.