Aggregate Demand - Why AD Curve Slope Downwards - Shift in the AD Curve
3 important questions on Aggregate Demand - Why AD Curve Slope Downwards - Shift in the AD Curve
What happens to the AD curve when factors other than inflation change output?
The entire curve moves either right or left at every inflation rate.
What are exogenous changes that can affect the AD curve?
Spending unrelated to output or interest rates influences the AD curve significantly.
How does monetary policy affect the AD curve?
It entails central bank actions adjusting interest rates beyond normal inflation responses.
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