1-There are a number of theories that explain why the aggregate demand curve is downward sloping. The price level in the

[answerhappygod]

1-There are a number of theories that explain why the aggregate
demand
curve is downward sloping. The price level in the economy
increases. For
each of the following reactions, which theory explains it and
why:
a. My company was planning to build a new factory but decide not to
for
the moment.
b. I stop buying Irish potatoes and buy UK potatoes instead
c. I usually get a take away on a Saturday night, and although I
can still
afford it, I decide to cook instead.
2-A change in expectations leads to a decrease in the short run
aggregate
supply in an economy. With the aid of a diagram, explain what
effect this
has on the price level, output, and unemployment.