The principal goal of the aggregate demand and aggregate supply model is to explain the

the election of a popular presidential candidate suddenly increases people confident in the future. use the model of aggregate of demand and supply to analyze the effect on the economy

Consider a macro-economy that was initially at equilibrium. Using an aggregate demand and aggregate supply diagram model of the economy, graphically illustrate and discuss the short-run and long-run effectsof the following events upon the economy:(a) The imposition of a carbon tax upon local big polluting companies;(b) An appreciation in the foreign exchange rate value of the economy’s currency;(c) A major trading partner’s economy fall into recession;(d) The country’s main exports fall in price while the goods the country imports from abroad rise in price

List the three reasons for why the aggregate-demand curve slopes downward. Explain Answer