Question: 1. Show graphically and explain how the AD curve is derived. 2. What are the factors that shifts the AD curve? Explain each briefly. 3.

1. Show graphically and explain how the AD curve is derived.

2. What are the factors that shifts the AD curve? Explain each briefly.

3. What is AS curve? What are the assumptions of its possible shape?

4. What makes LAS curve different from the SAS curve? What are the assumptions made here?

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