Describe what happens to the aggregate demand curve in each of the situations below.

a. the stock market crashes causing everyone's wealth to decrease.
b. the government decides to invest in new fighter jets for the military.
c. large tariffs are enforced on imports causing imports to decrease severe while exports stay the same.
d. there is a significant increase in interest rates causing many potential home buyers to leave the housing market.

answer; competency based pay;

reducing the scale of the market for a new product.

answer///parietal;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.