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    On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?

    The course author didn't provide an answer for this question

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Questions & Answers

If a good is a normal good, which of the following statment is correct
Mhmad Reply
bigman. xarbi
why did nominal GDP rise by morethan real GDP during Q3 of 2020? what accounts for the difference?
Alara Reply
nominal GDP is not adjusted to the inflation, real GDP is adjusted.
Which countries' nominal GDP?
or global GDP? gross world product :) I think that is a relevant detail
nominal GDP use current year in calculation of GDP while real GDP use base year in calculation of GDP,
what is trade
Aqsa Reply
exchange of goods and services
how do u understand real income
lubega Reply
Income that earned by factor of production is called National income
what is trade balance
real income is the income after the adjustment of inflation, we use base year in it's calculation
anyone to shade more light on elasticity demand?
Ashraf Reply
How are the diminishing marginal utility and negatively sloped demand curve related
Siva Reply
what are the types of trade cycle
riziwani Reply
no saving and tax always subtract from NDPmp
Piyush Reply
these are not part of national income
how so?
but it was given
tax always subtracted from?
tax are always subtracted from what?
keynesian consumption function explain and function
Abdullah Reply
is saving and direct taxes part of income method?
then where should it belong?
what is the rules of macroeconomics
Amadou Reply
Q1. Discuss the comparative analysis of different economic systems which are prevalent around the world. Give detail examples of different countries where different economic systems are in operation. Also discuss how these countries solve the three basic economic problems of what, how and for whom to produce.
Sami Reply
as interest rates increase what happens to planned investment and aggregate expenditures
Patrick Reply
what is applied economic
Micheal Reply
what is the Demand curve
how does one analyze a market where both demand and supply shift
Reymark Reply
explain and justify the effect of the event to the demand and supply for direction then apply the elasticity concepts for extent , support with diagrams
objective of macro economic
saroj Reply

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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