a) How does the size of the simple multiplier relate to the slope of the aggregate demand curve?
b) How does the slope of the AD curve affects the stability of real GDP when the economy experiences an aggregate supply shock.
c) How does the size of the multiplier relate to the size of a shift in the aggregate demand curve.
d) For a given aggregate supply curve, show how the size of a AD shift affects the stability of real GDP.
e) Explain how the economy's automatic stabilizers depend on the sizes of MPC, t and m.