1. Aggregate Demand curves slope down. Explain in a sentence what that means {what happens when Price Level falls, all else constant?) and give one reason for the negative slope (inverse relation}. 2. Assume an economyr operates in the intermediate range of its aggregate supplyr curve. State the direction of shift for the aggEgate demand curve or aggggate supply curve for each of the following changes in conditions. What is the effect on the price level? On real GDP? MpLoVLnt? a. The price of crude oil rises signicantlv {300%, say] raising the price of energ'glr generallv. b. Spending on national defense doubles. c. Investment spending falls as m15 expect slower sales growth. cl. An improvement in technology raises labor productivity. e. The United States raises exports of new passenger aircraft to China. 3. Identify.r the three ranges of the aggregate supply curve. Explain the impact of an increase in aggregate demand in each range