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1. What three effects explain why aggregate demand (referred to as AD henceforth) is downward
sloping? Which component of GDP does not have an effect associated with it?
. What causes movement along the AD curve?
3. What causes a shift in the AD curve? (You need to know causes of a shift AND the direction of a shift)
Why is the short-run aggregate supply curve (SRAS) upward sloping?
1. What three effects explain why aggregate demand (referred to as AD henceforth) is downward
sloping? Which component of GDP does not have an effect associated with it?
. What causes movement along the AD curve?
3. What causes a shift in the AD curve? (You need to know causes of a shift AND the direction of a shift)
Why is the short-run aggregate supply curve (SRAS) upward sloping?
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