• October 2nd, 2017

ECO 372 Week 2 Discussion Question 3

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In your opinion, which two determinates currently have the greatest impact on aggregate demand and supply? Justify your response with an example.

Changes in the variables that effect supply and demand:

Aggregate Demand: Income, wealth, population, interest rates, credit availability, government demands, taxation, foreign demand, investments, expectations that are based on inflationary, income, wealth and interest rate.

Aggregate Supply: Cost of labor (wages) and resources, Investment, productivity, interest rates, credit availability, foreign supply, expectations for profits, inflationary and interest rates, and taxation.

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