Why the aggregate demand curve has a negative slope

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Explain what the tax multiplier is and why it is less than the expenditure multiplier.

Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP.

Explain how the accelerator and the multiplier concepts can represent an internal theory of business cycles.

Explain, in your own words, why the Aggregate Demand curve has a negative slope.

Reference no: EM13224891

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