17. The difference between market demand and aggregate demand is: A) Market demand applies to...
17. The difference between market demand and aggregate demand is:
A) Market demand applies to all individuals, and aggregate demand does not.
B) Aggregate demand applies to a specific good, and market demand does not.
C) Policy levers work through market demand but not aggregate demand.
D) Aggregate demand applies to all goods in an economy and market demand applies to a specific good.
Homework Answers
The basic difference between demand and aggregate demand is demand talks about for a specific good or a service .
For example ,it follows Law of demand.
If price of butter increases the quantity demand of butter will decrease because it is normal good .
But if it talk about the aggregate demand,it talks about the whole economy demand or for a paricular market .
so the only option true here is option d
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in aggregate demand?
Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
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