Understand the differences between AD, SRAS, and LRAS

1.Why does the Aggregate-Demand curve slope downward?

2. Why might the Aggregate-Demand Curve shift?

3.Why does the Short-Run Aggregate-Supply Curve slope upward?

4. Why might the Short-Run Aggregate-Supply Curve shift?

5. Why is the Long-Run Aggregate-Supply Curve a vertical line?

6. Why might the Long-Run Aggregate-Supply Curve shift?

7.What happens to the AD curve when,

a.A ten-year-old investment tax credit expires.

b.A fall in prices that increases the real value of consumers' wealth.

c . State governments replace their sales taxes with no taxes.

8. Graphically show the economy in long-run equilibrium.