Business, 18.07.2020 22:01 kiasiab17

Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand from AD1 to .

Answers: 2

Show answers

Answers

In the macroeconomics term, the aggregate demand is referred to as the domestic demand of the consumers at the final analysis. It can be also known as the total demand for the final goods and services in an economy at the given period of time. This is the demand that directly contributes to the computation of the Gross Domestic Product.

The correct option is d. AD2 and then to AD3

Option d. AD2 and then to AD3 is correct because the point where AD and AS intersect is the quantity produced in the short run. The government policies should therefore be geared at an equilibrium level.

Option:

a. AD4 and then to AD3

b. AD3 and then to AD4

c. AD3 and then to AD2

These options are wrong because they do not explain the correct shift or the displacement of the curve in the right direction instead they are providing the wrong direction to shift to the aggregate demand curve.

The Fed should therefore attempt to increase the investment by enough shift in the aggregate demand from AD1 to AD2 and then to AD3 because at AD3, the Aggregate Demand would be intersecting the AS at the Full Employment quantity.

To know more about the shift in the curve of aggregate demand, refer to the link below:

link

Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough

Answer from: sumayyahjj

d. AD2 and then to AD3

Explanation:

The Long Run Aggregate Supply Curve represents the supply in the Economy when the Economy is at full employment. Operating at this level would be most ideal for an economy.

The point where AD and AS intersect is the quantity produced in the short run. Government policy should therefore be geared at an equilibrium level where Aggregate Demand = Aggregate Supply = Long Run Aggregate Supply because at this point, the Economy will also be at Full Employment in the Short Run which is ideal.

The Fed should therefore attempt to raise investment by enough to shift aggregate demand from AD1 to AD2 and then to AD3 because at AD3, the Aggregate Demand would intersect the AS at the Full Employment quantity which is ideal.

Answer from: Quest

i think this is true i hope this

Answer from: Quest

hi there,

do u need ? ?

thx

Another question on Business

Business, 22.06.2019 11:00

Consider an economy where government expenditures are 10 and total tax revenues are 10. the supply of labor is fixed at 125 and the supply of capital is fixed at 8. the economy is described by the following equations. y k to the power of 1 divided by 3 end exponent l to the power of 2 divided by 3 end exponent c 2.5 + 0.75 ( y - t ) i 10 - 0.5 r the level of private savings is

Answers: 1

Answer

Business, 22.06.2019 13:30

Hundreds of a bank's customers have called the customer service call center to complain that they are receiving text messages on their phone telling them to access a website and enter personal information to resolve an issue with their account. what action should the bank take?

Answers: 2

Answer

Business, 22.06.2019 16:40

Job applications give employers uniform information for all employees,making it easier to

Answers: 1

Answer

Business, 22.06.2019 17:30

If springfield is operating at full employment who is working a. everyone b. about 96% of the workforce c. the entire work force d. the robots

Answers: 1

Answer

You know the right answer?

Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough...