Aggregate Supply and Aggregate Demand Model ASS Price CPI 210 175 Es E. ADD, ADD, 150 `ADD, ADD, Full Employment 550 1100 1650 Real GDP Billion dollars per year (1) Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other govemment funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping left to right.

To determine the price level and aggregate output, the aggregate demand and aggregate supply must

What relationship does the short-run aggregate supply curve represent?

How does the economy return to equilibrium in response to changes in aggregate demand (AD) and aggregate supply (AS) in both the short run and long run.

Suppose that the election of a popular presidential candidate suddenly increases people’s confidence in the future. Use the model of aggregate demand and aggregate supply to analyze the effect on the economy.

There are three distinct reasons why the aggregate demand curve slopes downward.  List and discuss each reason.   The aggregate supply curve can be upward sloping or vertical depending upon the time frame we are considering (short-run or long-run).  In what time frame is the aggregate supply curve vertical?  Why?  In what time frame is the aggregate supply curve upward sloping? Why?

Need help with this. Please show how to adjust the AS and AD lines. Thanks!

What are the four reasons why aggregate demand curves might shift? Briefly explain each one of them.

If the economy’s labor force is increasing and also becoming more productive, what will happen to the aggregate supply curve?

Need help with this. Please show where to put AD2 and New Macro Eq and I provided you with possible answers for the last part. Thank you!