Why should this policy be undertaken at some gdp level

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Reference no: EM1371003

Q. 1) Derives aggregate demand curve. In your derivation, carefully explain where terms in Aggregate demand come from.

2) Your class mate says "why do you not just use Ep curve. It Explain how everything this one Explain how and it's simpler". Discuss 'generality' to Explain how your classmate that y are wrong and should have attended class more often?

3) Explain why aggregate supply curve has shape it does. Explain how does it differ from Long Run/Short Run AS curves? Comment on generality of each way of describing AS curve.

4) Choose a demand side policy option such as changing taxes or government spending and explain policy, describe illustrate what it does to economy and Explain how impact with use of aggregate demand/supply model. (You do not have to use actual numbers. Only use short run AS curve.)

5) Why should this policy be undertaken under conditions where economy is at some GDP level less than full employment level? You may use a long run aggregate supply curve to bolster your argument here.

Reference no: EM1371003

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