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Answer to Question #16221 in Economics of Enterprise for babu
Question #16221
If you wanted to increase aggregate demand how would you do it for:
Consumption demand
Investment demand
Net exports
Which one of these types of expenditure also have an effect upon the Aggregate supply side of the economy?
Consumption demand
Investment demand
Net exports
Which one of these types of expenditure also have an effect upon the Aggregate supply side of the economy?
Expert's answer
Consumption demand – decrease of price level could lead to increase of aggregate demand
Investment demand – Increase in interest rate will lead to attraction of more sources
Net exports- Increase of Export with decrease of Import will lead to increase of aggregate demand
Consumption demand has an effect upon Aggregate supply side
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