Why is aggregate demand curve downward sloping, Ask an Expert

Economics

Why is aggregate demand curve downward sloping? (Interest-rate effect, foreign purchases effect and real-balances effect be able to explain logic behind each of these)

What are the determinants (shifters) of AD curve.

Be able to determine the equilibrium level of GDP after a change in either AS or AD.

How can cost-push inflation be shown and explained using AD-AS model?

How can demand-pull inflation be shown and explained using AD-AS model?

What is a ratchet effect?

What are the two instruments of discretionary fiscal policy?

How can the government pursue expansionary/contractionary fiscal policy?

Why the equal-size change in government expenditures or taxation have a different effect on GDP? Which one will have a larger effect?

Why progressive tax system is called a build-in stabilizer?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91340449

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