Reflect on the major topics of this unit Topics: • Aggregate Demand and Aggregate Supply: The Long Run and the Short Run

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Reflect on the major topics of this unit
Topics:
• Aggregate Demand and Aggregate Supply: The Long Run and the
Short Run
• Recessionary and Inflationary Gaps and Long-Run Economic
Equilibrium
• Determining the Level of Consumption
• Aggregate Expenditures and Aggregate Demand
answer the three problems. Be sure to consider alternative
perspectives as you answer the problems.
Explain why a change in one component of aggregate demand will
cause the aggregate demand curve to shift by a multiple of the
initial change.
Give three reasons for the downward slope of the aggregate
demand curve.
Suppose nominal wages never changed. What would be the
significance of such a characteristic?