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Please help me Aggregate Demand and Aggregate Supply 1. What does the model of aggregate demand and aggregate supply try to explain? 2. What is
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Aggregate Demand and Aggregate Supply 1. What does the model of aggregate demand and aggregate supply try to explain? 2. What is aggregate demand? 3. What is aggregate supply? 4. What are the three reasons aggregate demand slopes downward? 5. What six factors shift the aggregate demand curve? 6. What shape is the long run aggregate supply curve? 7. Explain why LRAS is this shape. 8. What is the natural rate of output? 9. What factors shift the long run aggregate supply curve? 10. What shape is the short run aggregate supply curve? 11. What factors shift short run aggregate supply? 12. Using an ASIAD diagram, illustrate the effects of a fall in aggregate demand. What happens in the short run E Output? Unemployment? Price level? Explain how the economy returns to the long run level of output if it is allowed to self-adjust. What happens in the long run, if the economy self adjusts, to: Output? Unemployment? Price level? What policies could the government use to stabilize the economy? How would these policies work? What happens in the long run, if the government uses policy, to: Output? Unemployment? Price level? 13. Using an AS/AD diagram, illustrate the effects of an aggregate supply shock. What happens in the short run to Output? Unemployment? Price level? Explain how the economy returns to the long run level of output. What happens in the long run, if the economy self adjusts, to: Output? Unemployment? Price level? What policies could the government use to stabilize the economy? How would these policies work? What happens in the long run, if the government uses policy, to: Output? Unemployment? Price levelStep by Step Solution
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