Why is the ad curve downward sloping

Reference no: EM133438981

Questions: Answer the questions associated with FRQ Aggregate Demand Aggregate Supply . Please submit the assignment as a WORD/pdf/scanned image by the deadline.

1. Why is the AD curve downward sloping?

2. Which sector(s) of the economy are represented on the AD demand curve?

3. Why is the SRAS curve upwards sloping?

4. Why is the LRAS curve a vertical line?

4. Assume the US economy is operating at full employment. Using a correctly labeled graph of the LRAS supply curve, the SRAS supply curve, and the AD curve show the current price levels P1 in the economy and current output level Y1 in the economy.

Reference no: EM133438981

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