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Aggregate Demand includes consumption, government investment, net exports and investment. Lower interest rates will make it less attractive for consumers to save, as the returns they will receive on their...

They might want to check if the price elasticty of demand for the good is elastic or inelastic. If it were elastic then the percentage change in price would be smaller than the percentage change in quanti...

This question appears at first as counter-intuitive as one might imagine that where demand is inelastic and consumers are not responsive to a rise in price, this would be ideal for a monopoly to make a pr...

First one must understand the effects of a change interest rates has, If interest rates fall, we would likely see an increase in levels of consumption as people do not receive such a great return from int...

Price Elasticity of Demand (PED) is a measure of the responsiveness of demand to a change in price. A PED of -0.5 suggests demand is price inelastic – as Price falls by 1%, Demand will increase by 0.5% (l...