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6. The following diagram shows an aggregate supply curve and six aggregate demand curves. 7. The following diagram shows two aggregate supply curves and three

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6. The following diagram shows an aggregate supply curve and six aggregate demand curves. 7. The following diagram shows two aggregate supply curves and three aggregate demand curves. JAS AS, AS2 Price level Price level AD 6 ADS AD 2 AD, AD. ADy ARZ Real domestic output AD. Real domestic output a. The movement of the aggregate supply curve from AS, to AS2 represents (an increase, a decrease) a. The movements of the aggregate demand curves in aggregate supply. If the price level from AD, to AD2, from AD; to AD4, and from AD to is flexible downward and upward, this change in AD: all portray (increases, decreases) Increase aggregate supply in each of the three ranges along the aggregate supply curve will (raise, lower) in aggregate demand. (1) The movement from AD, to AD2 increases the (real the price level and (expand, domestic output, price level) contract) the real domestic output. but does not change the _ (2) The movement from ADg to AD4 will (raise, lower) the price level and will (expand, contract) the real domestic output. (3) The movement from AD, to AD, will b. The movements of the aggregate demand curves to the left all portray (increases, decreases) in aggregate demand. What effects will these changes in aggregate demand have on the real domestic out- put and the price level

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