ECON 302 Final: VelkPart1-2
Document Summary
In the manner of the schools briefs (or drawing upon lecture or other sources) discuss and explain the shape and slope of the: Part 1 (8pts): shape and slope of aggregate demand curve. The aggregate demand curve is not a behavioural curve meaning you cannot justify its downward sloping shape by saying that when prices go down people demand more. Those 2 effects gave you a downward sloping demand for coconut. The demand curve for coconuts is about the relative price of coconut with other goods. It is not the same of your ad curve. When the price fall people will demand more, like you would for. Meaning the ad curve is a collection of points of equilibrium in your money and goods markets (the equilibrium point of your. Remember, the ad curve comes from moving the lm curve in your.