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What is aggregate demand

Assignment:

1. What is aggregate demand? What are its components?

2. Why is the aggregate demand curve downward sloping?

3. What shifts the aggregate demand curve?

4. What is aggregate supply?

5. What shifts the short run aggregate supply curve?

6. What is the shape of the long run aggregate supply curve and why is it that way?

7. What does potential output mean and what is happening when the economy is at potential output?

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