Question 3) Consider the discussion in chapter 13 of the Jonestextbook; answer the questions below in regard to the slope of theAggregate Demand curve. (You may use a diagram for parts (b) and(c) to better explain your answer) Â Â
a. Why does the AD curve slope downward?
b. If the AD curve were more steeply sloped, how would theeconomy respond differently to aggregate demand shocks (shocks toÌ…)?
c. If the AD curve were more steeply sloped, how would theeconomy respond differently to aggregate supply shocks (shocks toÌ…)?
d. What kind of economic changes in the economy wouldlead the curve to be more steeply sloped?
(can you answer part (d) for me?)
