macroeconomic 7

Each question should be at least 120 words. Be substantive. .What is the relationship between short-run aggregate supply and long-run aggregate supply?
.Why do new classical economists believe the economy will “self-correct” from aggregate demand and aggregate supply shocks?
.How can changes in real GDP equilibrium occur in the aggregate expenditures model and how do these changes relate to the multiplier?
.How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?
.How do changes in income affect consumption (and saving)?
.What are factors other than income that can affect consumption?
.What is aggregate demand (AD) and why is its downward slope the result of the real-balances effect, the interest-rate effect, and the foreign purchases effect?
.What is aggregate supply (AS) and why does it differ in the immediate short-run, the short-run, and the long-run?

 

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