Discussion Post: Macroeconomic
• What is are the 4 components (economic actors) of AD?
• What is the most imortant reason the total amount bought is larger at lower levels of inflation? (HINT: it's listed first in AD in our textbook.)
• What does the short-run AS tells us about the price level as the economy tries to produce more output?
• What has to happen for a curve to shift? (HINT: ceteris paribus)
• If (only) the AD curve shits to the right (OUT), what happens to equilibrium Real GDP and Price Level (inflation)?
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.