Please answer the questions with a new approach than what is presently there. 1. Does the...

Please answer the questions with a new approach than what is presently there.

1. Does the Aggregate Demand (AD) curve always slope downward? Discuss and use explanations (interest rate effect, wealth effects, open economy effect to illustrate your answer).

2. The Aggregate Supply (AS) curve slopes upward to reflect the profit motive of businesses. So, why are there two versions of the AS curve( i.e. short run and long- run). Discuss.

Expert Solution

Rahul Sunny answered 2 years ago

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