1. The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.
2. What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?
3. Shifts in the Aggregate Supply Curves List and discuss the things that will make the Short Run Aggregate Supply curve shift to the left or to the right. Illustrate. List and discuss the things that will make the Long Run Aggregate Supply curve shift to the left or to the right. Illustrate.
4. What is the natural level of output?