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hey have you heard of the new air force one Jordans ?
yea, but i heard they are really expensive.
yea, they are expensive but they are so worth it, everyone at school are getting them.
yea, i know but i don't know if i can get them.
do you what ever you can to get them they are worth it.
okay i will try but i doubt that i will get them.
this cartoon shows aggregate demand, because it tells us that there is a new product on the market, and that aggregate demand will shift to the right on a graph because many consumers want this product. this slightly also shows the crowding out effect because since the demand is so high that the price will also be high, this is why the boy cannot afford the shoes
the image above shows the natural habit of the crowding out effect. Since the aggregate demand curve is shifted to the right this will make the company increase the price on that product to maximize profits. so because of that some people such as the boy will not be able to afford the shoe, showing the crowding out effect.
this photo is an overview on the crowing out effect which is stipulating that rises in public sector spending drive down or even eliminate private sector spending. ... The crowding out effect is also often referred to simply as “crowding out.” and determoinaties of aggregate demand being consumer likes or dislikes and money spent on a certain product
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