Question: 1. Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded. Include discussion of

1. Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded. Include discussion of how the price level relates to each event.

2. What are the major factors that determine investment, and what impact does each have on aggregate demand?

3. The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.

4. What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?

5. Shifts in the Aggregate Supply Curves

List and discuss the things that will make the Short Run Aggregate Supply curve shift to the left or to the right. Illustrate.
List and discuss the things that will make the Long Run Aggregate Supply curve shift to the left or to the right. Illustrate.

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