Explain how it is possible to obtain a positively sloped short-run aggregate supply function from the “sticky price” mod

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Explain how it is possible to obtain a positively sloped
short-run aggregate
supply function from the “sticky price” model.
(b) [4 marks] Provide one explanation for the negative
relationship between the aggregate price level and the aggregate
output implied by an aggregate demand function.
(c) [6 marks] In a diagram, draw the AD-AS model with
fixed prices in the short-run. Starting from long-run equilibrium,
suppose that there is a negative shock on the aggregate demand.
Explain the short-run and long-run effects of this negative demand
shock.
(d) [7 marks] Now suppose that the short-run aggregate
supply is positively sloped. Explain the short-run and long-run
effects of a negative demand shock paying attention to the role of
expectation. Compare your answer with case (c).