3) During the COVIDlQ pandemic, Japans population has started to 'hoard' cash and spend less: This affects the Aggregate Demand (AD) in the economy. a) AD slopes downwards from left to right. Why does the AD curve have this shape? Explain this in terms of the price level and the buying power of money, the price level and the real exchange rate, and the price level and the real interest rate. b) The effects felt in Japan are a result of falling consumer condence, which ows through to lower consumer spending, which affects AD. Does this increase or decrease AD? What does this mean for output in Japan's economy? Assume all other variables remain constant when answering this