Economics

Concern about international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply?
A. No change
B. Aggregate supply will decrease, raising the price level and lowering real GDP
C. Aggregate demand will increase, lowering both real GDP and the price level
D. Both aggregate demand and aggregate supply will decrease, leading to lower real GDP

  1. 👍 0
  2. 👎 0
  3. 👁 155
asked by Codey
  1. Please try some of the following links:

    http://search.yahoo.com/search?fr=mcafee&p=effect+on+aggregate+demand+%26+supply+when+consumers+save+their+money+%26+postpone+big+purchases%3F

    Sra

    1. 👍 0
    2. 👎 0
  2. b

    1. 👍 0
    2. 👎 0
    posted by jerrrt

Respond to this Question

First Name

Your Response

Similar Questions

  1. Composition

    Looking for guidance. Below are two paragraphs I wrote concerning how interest rates affect our purchasing. The first sentence in each I have identified as my topic sentence. I question if the major points are stated clearly; are

    asked by Jim on January 23, 2011
  2. English

    Why do you save money? 1. I save money to buy a fancy bike. 2. I save money to buy the MS Office program. 3. I save money to buy a Samsung galaxy 5. 4. I save money to please my parents, for they like me to save money. 5. I save

    asked by rfvv on November 18, 2014
  3. writing

    If I could get some help? I was wonderung if I had done this right.Write two paragraphs about how interest rates affect our purchasing decisions. Identify the topic sentence in each by underlining it. I have determined that the

    asked by Anonymous on August 12, 2011
  4. Economics

    21. How do fears of future economic problems affect GDP? A. Businesses will invest more money in the short term to ensure higher profits in the future; GDP will be pushed up. B. Consumers will spend more money in the short term to

    asked by Codey on May 31, 2011
  5. History- French Revolution

    I think the answer is a, but I would choose e if it weren't for letter d. Because I don't believe that his taxes actually resolved the financial crisis. Help, please. The financial crisis of the pre-1789 period in France: a. was

    asked by Nicole Anilom on January 13, 2011
  6. Statistics

    Intentions of consumers regarding future automobile purchases and the financial capability of the consumers are given below: What is the provability of P(A | D)? a)0.5 b)0.75 c)1 d)0

    asked by Stuart on March 29, 2009
  7. foundationd of personal finance

    . List two ways to begin putting aside money for investments. You can often save money by making small changes. Share one tip you think may help save some money in the long-run.

    asked by Anonymous on February 18, 2011
  8. English

    Passive Voice Sentence: More concern was shown (by television viewers) over the Super Bowl than over the outbreak of an international conflict. Is this correct for an Active Voice: The Super Bowl had more concern over the outbreak

    asked by jennifer on November 14, 2015
  9. social studies

    How is money used as a store value? A. People use money to buy productive resources to make goods and services. B. People agree that money has value to purchase needed goods and services. C. People compare the value of different

    asked by Rummy tum tum 33 on January 10, 2017
  10. English

    Q1: Is a backpack used as a school bag a lot in the USA? Q2: I don't know how to save money. 1. I can help you with that. 2. I can help you with saving money. 3. I can help you save money. (Does #1 mean #2 or #3?)

    asked by rfvv on May 10, 2017

More Similar Questions