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1. Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded. Include discussion of how the price level relates to each event.

2. What are the major factors that determine investment, and what impact does each have on aggregate demand?

3. Describe the difference between a microeconomic demand curve and an aggregate demand curve.

4. The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.

5. What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?

6. Explain how changes in the stock of capital affect aggregate supply.

7. What is the natural level of output?

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  • Category:- Business Economics
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