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effect of interest rate on aggregate supply in delhi Interest rates can also affect exchange rates, which in turn will have effects on the export and import components of aggregate demand. Summary The aggregate demand/aggregate supply model is a model that shows what determines total supply or total demand for the economy and how total demand and total supply interact at the macroeconomic level.
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Important Questions for Class 12 Economics …
3. Give the meaning of Aggregate Supply. (Foreign 2014) or Define Aggregate Supply. (All India 2009,2008) Ans. Aggregate Supply is the money value of the final goods and services or national product produced in an economy during one year. It is equal to income generated. 4. Define Marginal Propensity to Consume. (Delhi 2014; All India 2009) Ans.
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16-09-2020 · Aggregate supply is the goods and services produced by an economy. Its driven by the four factors of production: labor, capital goods, natural resources, and entrepreneurship. These factors are enhanced by the availability of financial capital.
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16. In terms of the aggregate demand and supply framework, a decrease in the money supply will shift aggregate ___. A. demand to the left B. supply to the right C. supply to the left D. demand to the right II. Short Answer 17. If, contrary to Classical theory, the interest rate does not fall to eliminate an excess of saving over investment and if prices and wages do not fall as unsold goods ...