Aggregate Demand and Aggregate Supply [WLO: 3] [CLOs: 1, 2]
Prior to beginning work on this discussion, read Chapter 6 in the course text and respond to the following components:
- Discuss the reasons why the aggregate demand (AD) curve slopes downward.
- What causes the AD curve and aggregate supply (AS) curve to shift, respectively?
- How would a change in AD and AS affect the economy, respectively?
- Why do Keynesian economists emphasize AD whereas classical economists emphasize AS?