What two variables are determined in an aggregate supply-aggregate demand figure? Is the slope of the aggregate supply curve positive or negative? Is the slope of the aggregate demand curve positive or negative?
What will be an ideal response?
The aggregate supply-aggregate demand framework determines the equilibrium price level and equilibrium real GDP. The aggregate supply curve is positively sloped, indicating that an increase in the price level increases the aggregate quantity of goods and services supplied. The aggregate demand curve is negatively sloped, indicating that an increase in the price level decreases the aggregate quantity of goods and services demanded.
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Recently, the U.S. national income accounts have switched to calling government purchases
a. government spending and transfer payments. b. transfer payments and gross investment by government. c. government consumption expenditure and gross investment. d. government wages, salaries, and investment expenditure.
The Standard & Poor's 500 index is a broad index of the 500 largest firms from the New York Stock Exchange, the NASDAQ stock market and the American Stock Exchange.
Answer the following statement true (T) or false (F)