Why does the aggregate demand curve slope down. give, Ask an Expert

Economics

Inflation and Aggregate Demand and Supply

Having problems with the three problems below.

1. Consider the following price information:

Year 1 Year 2

Cup of coffee $.50 $1.00
Glass of milk $1.00 $2.00

(a) Based on the information given, what was the inflation rate between year 1 and year 2?

(b) What happened to the price of coffee relative to that of milk between year 1 and year 2?

2. Why does the aggregate demand curve slope down? Give real-world exs of the three effects that describe the slope of the curve.

3. How is the aggregate supply curve different from the supply curve for a single good like pizza?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M926646

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