Question: Explain AS and explain its properties. Provide real world examples of demand-push and cost push inflation. Explain the differences between the short run and the

  1. Explain AS and explain its properties.
  2. Provide real world examples of demand-push and cost push inflation.
  3. Explain the differences between the short run and the long run.

4.Explain Aggregate Demand curve. (How is it measured?)

b. List the determinants of AD. (What causes it to shift?)

5. Explain Aggregate Supply, what are the three stages of the long run aggregate supply curve.

b. List the determinants of AS.

6.Explain investment; which curve does it resemble? (Hint: Supply or demand?)

7.Explain what an interest rate is. How will this effect consumption and the relationship between investment?

8.What are Aggregate Expenditures?

9.What is the relationship between Real GDP and AE?

10.What determinants reduce or increase AE?

11.Explain, MPC, MPI, and MPS. How can this effect AE and Real GDP?

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