Question
What might cause the Aggregate Demand curve to shift to the right? What does this mean for the state of the economy? What might cause
What might cause the Aggregate Demand curve to shift to the right? What does this mean for the state of the economy? What might cause the Aggregate Demand curve to shift to the left? What does this mean for the state of the economy?
Sometimes the Aggregate Supply curve is drawn as an upward sloping straight line--other times it is drawn initially flat, then upsloping, then very steep. How does the shape of the AS curve matter for the effect a rightward or leftward shift of the AD curve will have on real GDP and the price level? When do we expect a rightward shift of AD to cause inflation? When do we expect it to cause decreased unemployment? (Hint: Draw this out on a piece of paper for yourself to see what's going on).''
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The Aggregate Demand AD curve represents the total demand for goods and services in an economy at different price levels It can shift to the right or left due to various factors impacting the state of ...Get Instant Access to Expert-Tailored Solutions
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