Starting from a full-employment equilibrium, an increase in aggregate demand increases, and creates an inflationary gap.
In an economy, the total quantity of demand for all finished goods and services is measured as aggregate demand. A measure of aggregate demand is the total amount of money spent on certain goods and services at a particular price level and period.
The entire demand for products and services at any given price level throughout a specific period is referred to as aggregate demand in macroeconomics. Since the two indicators are derived in the same way, aggregate demand over the long run equals gross domestic product (GDP). A country's gross domestic product (GDP) reflects all the products and services that are produced there, whereas aggregate demand refers to consumer demand for the same goods.
Learn more about Aggregate demand, here
brainly.com/question/29022331
#SPJ4
Answer:
None
Explanation:
Before a bank decides on which interest rate placed on loans given to customers, it will have to be a general agreement between the board of directors in an Annual General Meeting (A.G.M). Or else stated otherwise which is quite rare, interest rates on loans and mortgages are based on a simultaneous agreement. When an interest rate is to be decided for a certain customer, his or her credit scores are evaluated to ascertain the loanee's ability to pay back the loan. When a loanee's credit scores are low, he or she tends to receive a high interest rate on loans and mortgages while when a loanee's credit scores are high, he or she tends to receive a low interest rate on loans and mortgages.
On the case of the client who works in a bank granting the registered representative a mortgage with lower interest rates, this cannot be possible because: first, the client's position in the bank was not clarified and secondly, the registered representative's credit scores will be the evaluation report used by the bank to grant that.
Answer:
$2,800
Explanation:
The computation of the increase in consumption is shown below:
= Marginal propensity to consume × rise in income
= 0.70 × $4,000
= $2,800
Hence, the consumption would be increased by $2,800
We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come
Answer:
<u>c. there is the possibility that the funds are used for riskier behavior than the lender agreed to.</u>
Explanation:
True. The term "Moral Hazard" as used in an investment context, often refers to a scenario where one party with a <em>lesser risk burden</em> in a business agreement, <u>deliberately </u>takes investment risk that would be detrimental to others in the agreement who have a higher risk burden.
It is an unethical business practice; a moral hazard, and so acts as a barrier to investors who may want to finance global growth.
