Question: 2. Please briefly define aggregate demand (AD), aggregate supply (AS), and the price level (P). W…

30 Apr Question: 2. Please briefly define aggregate demand (AD), aggregate supply (AS), and the price level (P). W…

Posted at 23:20h in 2Past Paper by Exams

2. Please briefly define aggregate demand (AD), aggregate supply (AS), and the price level (P). Why do the AD curve slope downwards and what will be the impact on the P if AD curve shifts to the right? Show all of these interactions and the new equilibrium level on the diagram. How do you call this type of inflation according to the theory? (15 pts.) What are the altermative GDP measurement methods? What is the main difference between the methods? (15 pts.) 3.

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