What kind of economic changes in the economy

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Reference no: EM132118748

Question: The slope of the AD curve:

(a) Why does the AD curve slope downward?

(b) If the AD curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to a¯)?

(c) If the curve were more steeply sloped, how would the economy respond differently to aggregate supply shocks (shocks to o¯)?

(d) What kind of economic changes in the economy would lead the curve to be more steeply sloped?

Reference no: EM132118748

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