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1) derive the aggregate demand curve. in your derivation, carefully explain where the terms in Aggregate demand come from. 2) Your class mate says...

1) derive the aggregate demand curve. in your derivation, carefully explain where the terms in Aggregate demand come from.
2) Your class mate says "why do you not just use the Ep curve. It shows everything this one shows, and its simpler". Discuss 'generality' to show your classmate that they are wrong and should have attended class more often?
3) Explain why the aggregate supply curve has the shape it does. how does it differ from Long Run/Short Run AS curves. Comment on the generality of each way of describing the AS curve.
4) Choose a demand side policy option such as changing taxes or government spending, and explain the policy, describe what it does to the economy, and show the impact with the use of the aggregate demand/supply model. (you do not have to use actual numbers. Only use the short run AS curve.)
5) Why should this policy be undertaken under conditions where the economy is at some GDP level less than the full employment level? You may use a long run aggregate supply curve to bolster your argument here.

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