1.-Explain-how-the-following-changes-in-aggregate-demand-or

short-run-aggregate-supply,-other-things-held-unchanged,-are

likely-to-affect-the-level-of-total-output-and-the-price-level-in-the

short-run.

a.-An-increase-in-aggregate-demand

b.-A-decrease-in-aggregate-demand

c.-An-increase-in-short-run-aggregate-supply

d.-A-reduction-in-short-run-aggregate-supply

2.-Give-three-reasons-for-the-downward-slope-of-the-aggregate-demand

curve.

3.-Suppose-nominal-wages-never-changed.-What-would-be-the-significance

of-such-a-characteristic?