Purchase Solution

Aggregate demand

Not what you're looking for?

Ask Custom Question

Explain using an appropriate diagram how and through what mechanisms would each of the following affect the level of aggregate demand?

i)A sharp decline in business confidence.
ii) An increase in the marginal propensity to consume
iii) A fall in world income
(draw a separate diagram for each part of the question)

Purchase this Solution

Solution Summary

Name which mechanisms affect the level of aggregate demand.

Purchase this Solution

Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.