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In general when aggregate supply exceeds aggregate demand what is likely to result?
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When aggregate demand exceeds aggregate supply which of these is MOST likely to result?
A budgetary surplus
Because tax cuts will likely affect both aggregate demand and aggregate supply does it matter which is affected more?
Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
An increase in aggregate demand is most likely to be caused by a decrease in?
The tax rates on household income.
An increase in government spending on health care is likely to shift the?
Aggregate demand curve to the right. Stay Golden
What is the relationship between inflation and ocr?
As the OCR increases it is highly likely that banks will increase their retail interest rates. As they do this borrowing will become relatively more expensive so there will be more incentive to save. So consumption a component of Aggregate demand will decrease causing aggregate demand to decrease which will than decrease Demand pull inflation
When aggregate demand exceeds aggregate supply which of these is MOST likely to result?
A budgetary surplus
Because tax cuts will likely affect both aggregate demand and aggregate supply does it matter which is affected more?
Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
In which situation is a forest most likely to be sustainable?
When supply is greater than demand
An increase in aggregate demand is most likely to be caused by a decrease in?
The tax rates on household income.
An increase in government spending on health care is likely to shift the?
Aggregate demand curve to the right. Stay Golden
What is the relationship between inflation and ocr?
As the OCR increases it is highly likely that banks will increase their retail interest rates. As they do this borrowing will become relatively more expensive so there will be more incentive to save. So consumption a component of Aggregate demand will decrease causing aggregate demand to decrease which will than decrease Demand pull inflation
What is the relationship between money and inflation?
There is nearly a perfect, 1:1 relationship between inflation and the money supply. Generally, printing more money is the source of inflation.
What would cause a decrease in aggregate supply?
Aggregate supply is the supply of all goods and services within a country. Which of the following would most likely cause a decrease in the aggregate supply
What happens when interest rates increase?
well, it does two things to inflation. Firstly it increases the costs of production of firms therefore shifting Aggregate supply inwards (thereby increasing cost push inflation). It also shifts aggregate demand inwards because firms and households are less likely to want to borrow money in the case for consumption and investment because it increases their costs (this particularly affects the housing market and other big ticket items). This reduces the effects of demand pull inflation. So it shifts aggregate supply and aggregate demand inwards. When AS shifts inwards inflation increases. When AD shifts inwards inflation decreases. So the government would have to decide what the best policy is to do. Generally the shift inwards in AD will have a bigger effect on inflation (especially because the decrease in consumption which accounts for 60% of AD will hit consumers more - in mortgages) and also the effect will be maximised if the part of the AS curve is inelastic meaning an almost vertical drop in the general price level.
Discuss the factors that are likely to influence the demand for desktop computers in Ghana?
Discuss the factors that are likely to influence the demand for desktop computers in GHANA?
What kind of elastic demand does electricity belong?
It depends on whether electricity is necessity or luxury. In the US where electricity is a necessity, the demand is likely to be inelastic In Africa where electricity is luxury, the demand is likely to be elastic
If income increases demand is likely to?
Increase
