1.Explain the shapes of the aggregate demand curve and the aggregate supp curve, and how they interact to determine real GDP and the price level for a nation.
a.(Aggregate Demand and Supply) Review the information on demand and supply curves in Chapter 4. How do the aggregate demand and aggregate supply curves presented in this chapter differ from the market curves of Chapter 4?
2.Identify the five eras of the U.S. economy, and describe briefly what went on during each.
a.S9Supply-Side Economics) One supply-side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand curve?
Sample Solution
