Answer the following questions.

5 6 7 1. What does aggregate demand measure? What type of relationship exists between those things? 2) What explains the downward slope of the aggregate demand curve? 3) What are the things that cause a change in aggregate demand? 4) What are the things that cause a shift in the aggregate supply curve? 5 ) Graph the following: Amount of Real GDP Price Level Amount of Real GDP supplied Demanded 100 300 450 200 250 400 300 200 300 400 150 200 500 100 100 a) From the graph above, what is the equilibrium price and quantity? b) Create a new curve for the consumers. They wish to increase real output by 200 at each price level. c.) What is the new equilibrium price and quantity? I +