In: Economics
AD-AS and Phillip Curve Model, Money Market and Banking System
Why does the aggregate demand curve have a negative slope?
Why is the long run aggregate supply curve vertical?
Why does the short run aggregate supply curve have a positive slope?
Graphically illustrate an economy in the long run equilibrium, producing at the full employment level of production. Indicate the equilibrium Price level (P*) and the level of real GDP (Y*)