Please anyone who know this explain the concept. Help me!!(no.8)

Question

Sariya · Answer

Hemavani Are you from which branch of jksc??

S.Hemavani · Answer

Thank you very much dear 💖 Now I got it very clear

Nishu · Answer

In simple language, just remember that when money flows in the market it leads to increase in demand because people have money , and when the money is not flowed in the market ( happens in case when govt increases taxes , decrease spending , etc) in such case we can say that people don't have much money to spend hence less demand for goods and services

S.Hemavani · Answer

Really thnx 😊

Nishu · Answer

Okay so first of all , when aggregate demand curve shift to the left it means that people's demand for good and services have lowered . When government decrease spending , it leads to less money in the market which ultimately affects the disposal income of people . Thus , having less money to spend which leads to lower demand , lower demand in graphical form represents shifting of demand curve to the left .

S.Hemavani · Answer

Sorry for asking Can you please explain in English

Vicky · Answer

Govt. Spending Kam hone se demand Kam ho jaati hai , to demand curve left me shift hojayega , aur jab govt. Spending badhne se market me employment generate hoti hai jisse logo ke paas paise aata hai to demand badh jaati hai , (you can ask again if you still have problem )

Please anyone who know this explain the concept. Help me!!(no.8)

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