Explain how to aggregate demand changes with changes in:
a) Distribution of income
b) Monetary and fiscal policies
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Discuss how both the fiscal and monetary policies in the United States and in the Bible relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.
Explain how a combination of fiscal and monetary policies could change the composition of GDP towards consumption and away from investment without changing the level of aggregate demand.
Monetary policy is an effective way to increase demand if you're the sort of economist that believes the government should meddle in the economy. In a paragraph, thoroughly explain how monetary policy affects each of the four components of aggregate demand, why monetary policy changes each component of aggregate demand, and how monetary policy is able to cause these affect.