e. In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?

If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins an economy?

Define what economists mean when they use the word: “recession”?

Why is price “stickiness” or “rigidity” important for understanding macroeconomic adjustments? How would policy recommendations be different if prices adjusted immediately?

A rightward shift in the aggregate supply curve with no change in the aggregate demand curve signals an economic expansion. True or False?

Figure 2: Keynes’s AD-AS Model Economics Online. (n.d.). Aggregate supply. Retrieved from http://www.economicsonline.co.uk/Managing_the_economy/Aggregate+supply.html   2.1. In Figure 2 above, what are the factors that may cause the aggregate demand to shift from AD to AD1? What is the difference between demand pull inflation, cost push inflation and recession?

Legislation proposes that the government should use macroeconomic policy to achieve an unemployment rate of zero percent, by increasing aggregate demand for as much and as long as necessary to accomplish this goal. From a neoclassical perspective, how will this policy affect output and the price level in the short run and in the long run? Sketch an aggregate demand/aggregate supply diagram to illustrate your answer.

Show and explain graphically the AD/AS model in neoclassical economic and macroeconomic.

Compare and contrast the classical and Keynesian views of aggregate demand and aggregate supply.

I need help solving this question.