1. The Aggregate Demand curve shows the level of real output that the economy will purchase at each price level. a. List and thoroughly explain the three reasons the Aggregate Demand curve is downward sloping. In your explanation, please start with an increase in prices and work through to a decrease in AD. b. List and explain in detail, the components of Aggregate Demand and explain each of their determinants. You studied the 4 components. List and explain them and under each list and explain the determinants of each. c. Explain how the Aggregate Demand - Aggregate Supply Model differs from the Aggregate Expenditures model. Put the two models side by side, look for the differences and explain them.
1. The Aggregate
a. List and thoroughly explain the three reasons the Aggregate Demand curve is downward sloping. In your explanation, please start with an increase in prices and work through to a decrease in AD.
b. List and explain in detail, the components of Aggregate Demand and explain each of their determinants. You studied the 4 components. List and explain them and under each list and explain the determinants of each.
c. Explain how the Aggregate Demand -
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