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1. Does the Aggregate Demand (AD) curvealwaysslope downward? Discuss and use explanations (interest rate effect, wealth effects, open economy effect to illustrate your answer). 2.
1. Does the Aggregate Demand (AD) curvealwaysslope downward? Discuss and use explanations (interest rate effect, wealth effects, open economy effect to illustrate your answer).
2. The Aggregate Supply (AS) curveslopes upward to reflect the profit motive of businesses. So, why are theretwo versions of the AS curve( i.e. short run and long- run). Discuss.
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