definition of aggregate demand and its components

  1. What is the definition of aggregate demand? What are the components of aggregate demand?
  2. What relationship is expressed by the aggregate-demand curve? Draw a graph of the AD curve.
  3. Why does the aggregate demand curve have a negative slope? Be specific.
  4. What is aggregate supply?
  5. Why is the long-run aggregate-supply curve vertical? What factors shift the long-run aggregate-supply curve?
  6. Why does the short-run aggregate-supply curve slope upwards? What is the significance of an upward-slopping short-run aggregate-supply curve? What factors shift the short-run aggregate-supply curve?