What is the aggregate demand curve and how does it

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Chapter 5 / Exercise 2
Microeconomics
Arnold
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3.What is the aggregate demand curve and how does it differ from the market demand curves we have seen earlier in class?4.Why is the aggregate demand curve downward sloping?5.What causes the aggregate demand curve to shift?
6.What is the long-run aggregate supply curve and what is unique about its shape?
7.What causes shifts in the long-run aggregate supply curve?
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The document you are viewing contains questions related to this textbook.
Microeconomics
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Chapter 5 / Exercise 2
Microeconomics
Arnold
Expert Verified
8.What is the short-run aggregate supply curve and why is it upward sloping?
9.What would cause shifts in the short-run aggregate supply curve?10.Suppose a large portion of the US contracts a flu that lasts for one month. All people who have the disease cannot work. How will this affect the economy in the short run? Suppose the government attempts to offset this result by increasing the investment tax credits available to firms. How will this policy impact the economy?Labs M,Q,PWinter 2008Lab Sheet 14May 7thCh. 16: The Influences of Monetary and Fiscal Policy on Aggregate DemandKey Concepts: theory of liquidity preference, fiscal policy, multiplier effect, crowding-out effect, automatic stabilizers1.Why is the theory of liquidity preference introduced in Chapter 16?
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