assume that the united states government introduces an expansionary monetary policy, increasing the money supply in the market. in the accompanying graph, demonstrate the long run effect on aggregate demand and short run aggregate supply. then, answer the following question.

Respuesta :

Short-run effect on aggregate demand and short-run aggregate supply is it has no effect on GDP SRAS lines shifts left, AD line shifts right.

Aggregate demand is the total demand for goods and services in a country's economy at a certain price level. In an open economy, aggregate demand consists of demand from four macroeconomic sectors, namely households, businesses, government, and the external sector. Aggregate demand can also be defined as the total quantity of goods and services that households, firms and the government want to buy at the existing inflation rate. In other words, the demand that occurs as a whole in a country.

Among examples of aggregate demand are:

  • Total imports of Indonesian motorized vehicles throughout 2019 show aggregate demand for motorized vehicles from within the country
  • Indonesia's total shrimp exports to Japan in 2020 shows the aggregate demand for shrimp commodities from Japan.

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