Answer Happy

Question 2 Which of the following scenarios would result in a decrease in Aggregate Demand? O Technology improvements lead to productivity gains The congress passes a new income tax cut. O A rise in imports from Europe A decline in investors confidence causes investment to fall. Question 3 According to Keynes' Law... The total demand tends to rise above the total supply capacity in the short run which leads to recessions The total demand always equals the total supply capacity in the short run. The total supply of products determines the level of gross domestic product and the level of demand in the economy in the long run. The total demand for products determine the level of gross domestic product and may not equal the supply capacity of the economy in the short run.