Part2: answer the following: Q1 : explain the following factors that make the AD Curve Slopes Downward: a. The Wealth Effect (P and C) b. The Interest-Rate Effect (P and l) Q2: explain the curve below: LRASl LRASZ Output 03: What are the factors that may shift the AD curve? Q4: Illustrate the short-run macroeconomic Equilibrium graph and explain at what happen at this point? Q5.ldentify each of the following acts as representing either saving or investment. a. Fred uses some of his income to buy government bonds. b Julie takes some of her income and buys mutual funds. 0. Alex purchases a new truck for his delivery business using borrowed funds. d Elaine uses some of her income to buy stock in a major corporation. e Henrietta hires a builder to construct a new building for her bicycle shop. Q6.Explain why the demand for loanable funds slopes downward and why the supply of loanable funds slopes upward. Q7.Using the graph below representing the market for loanable funds, show and explain what happens to interest rates and investment if the government budget goes from a deficit to a surplus. Market for Loanable Funds So Interest | S1 rate rob - Demand 90 91 quantity of loanable funds