Ap Macroeconomics Aggregate Supply And Demand Test Answers

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Ap macroeconomics aggregate supply and demand test answers

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what we got was a test of demand-side versus supply-side stories about the nature of depressions. Demand-siders like me saw this as very much a slump caused by inadequate spending: thanks largely to the overhang of debt from the bubble years, aggregate.

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That is supposed to mean that aggregate demand more or less equals supply apart from the occasional Keynesian need to give demand a bit of help through monetary and fiscal policy. But the system is based on everyone having a job: less than 5 per cent&nbsp.

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Given all the excess production capacities in China, aggregate supply is not a constraint. As long as there is demand , there will be supply. The Chinese government has many instruments at its disposal and can act quickly to increase aggregate demand if&nbsp.

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In Period 3, aggregate demand ... test the clarity of your understanding. To understand this we need to begin with the national accounts which underpin the basic income-expenditure model that is at the heart of introductory macroeconomics. See the answer.

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