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Black_prince [1.1K]
3 years ago
5

The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because

a higher price level is necessary to make production profitable as production costs rise. shows the amount of expenditures required to induce the production of each possible level of real GDP. shows the amount of real GDP that will be demanded at each possible price level. g
Business
1 answer:
egoroff_w [7]3 years ago
7 0

Answer: shows the amount of real GDP that will be demanded at each possible price level.

Explanation:

The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.

If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.

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The long-run aggregate supply curve shifts right if:
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The long-run collective supply curve shifts right if productivity increases or the price of key inputs decrease. It makes the combination of the lower inflation, higher output and lower unemployment.

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The main two elements of aggregate supply are consumption and saving. The sum up of the national supply is the consumption expenditure and savings.

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