Please, I would need help with this Homework Assignments:

Question 1: Explain why a change in one component of aggregate demand will cause the

aggregate demand curve to shift by a multiple of the initial change.

Question 2: Suppose nominal wages never changed. What would be the significance of such

a characteristic?

Question 3: Suppose the minimum wage were increased sharply. How would this affect the

equilibrium price level and output level in the model of aggregate demand and

aggregate supply in the short run? In the long run?