petersondiontaeal82536Lv1

15 Feb 2023

Questions

1. What is the shape of the aggregate demand (AD) curve, short-run aggregate supply (SRAS) curve, and long-run aggregate supply (LRAS) curve?

2. Explain the reasons behind the shape of the aggregate demand (AD) curve.

3. Explain the reasons behind the shape of the short-run aggregate supply (SRAS) curve.

4. Explain the reasons behind the shape of the long-run aggregate supply (LRAS) curve.

5. Suppose there is a wave of consumer confidence. Explain the effect of this increase in consumer confidence in terms of both the short-run and long-run Philips curves and provide a brief explanation.