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Please answer to both of the questions 1/ In the model of aggregate demand (AD) and aggregate supply (AS), the AD curve slopes downward because

Please answer to both of the questions

1/ In the model of aggregate demand (AD) and aggregate supply (AS), the AD curve slopes downward because

a/ Because consumption, investment, government purchases, and net exports

b/ Because the law of demand

c/ Because of sticky prices, sticky wages, and misconceptions

d/ Because of the wealth effect, the interest rate effect, and the exchange rate effect

2/ Aggregate demand would shift right if either

a/ the price level decrease or the exchange rate appreciated

b/ Government expenditures increased or interest rates declined

c/ Invesment tax credits expire, or the money supply increased

d/ technology improved or wages decreased

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