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Aggregate Demand Government, and Export Sales, All at A Given Price Level

The document provides a worksheet to determine how changes in different economic factors would shift the aggregate demand curve and impact real GDP. It lists several scenarios involving changes in consumer spending, business investment, net exports, taxes, and other economic indicators. For each scenario, it must be determined whether the aggregate demand curve shifts right (AD1) or left (AD2) and the impact on real GDP is calculated using a given price level of 1.05.

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43 views

Aggregate Demand Government, and Export Sales, All at A Given Price Level

The document provides a worksheet to determine how changes in different economic factors would shift the aggregate demand curve and impact real GDP. It lists several scenarios involving changes in consumer spending, business investment, net exports, taxes, and other economic indicators. For each scenario, it must be determined whether the aggregate demand curve shifts right (AD1) or left (AD2) and the impact on real GDP is calculated using a given price level of 1.05.

Uploaded by

edwarddame
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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AP Government Determining National Income AD Worksheet

PL

AD1 AD AD2 Real GDP

Aggregate Demand Aggregate demand is the total demand for goods and services by consumers, businesses, government, and export sales, all at a given price level. For each of the follo ing statements decide hether the Aggregate demand c!rve shifts right to AD" or left to AD#. Where a dollar fig!re is given calc!late the change in GDP in each scenario. $%P& in each scenario is '().* ". Fear of f!t!re layoffs ca!ses cons!mer confidence to fall. &ons!mers c!t their spending by +"(( billion. #. A recession is feared so b!sinesses c!t investment in ne e,!ipment by +-( billion. .. /he 0!ropean economy is booming, so 1.2. firms are selling +'( billion more in net e3ports. 4. At a lo er inflation rate, interest rates fall, so cons!mer and b!siness spending increases by +#(( billion. -. /o red!ce the Federal deficit, income ta3es are raised on cons!mers and b!sinesses by +"-( billion. 5. /he stock market booms ca!sing increased cons!mer ealth. 6. &ongress c!ts ta3es by +6- billion.

'. 2!rvey sho s b!siness investment spending decreased by +.( billion last month. 7. President c!ts defense spending by +'( billion8 no increase in domestic spending. "(. 2!rvey sho s cons!mers are confident abo!t f!t!re economy. "". 9!siness leaders feel economy is headed for recession. "#. 2tock market collapses investors lose billions.

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