What might cause the Aggregate Demand curve to shift to the right? What does this mean for
Question:
What might cause the Aggregate Demand curve to shift to the right? What does this mean for the state of the economy? What might cause the Aggregate Demand curve to shift to the left? What does this mean for the state of the economy?
Sometimes the Aggregate Supply curve is drawn as an upward sloping straight line--other times it is drawn initially flat, then upsloping, then very steep. How does the shape of the AS curve matter for the effect a rightward or leftward shift of the AD curve will have on real GDP and the price level? When do we expect a rightward shift of AD to cause inflation? When do we expect it to cause decreased unemployment? (Hint: Draw this out on a piece of paper for yourself to see what's going on).''
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth