Before moving deep into the details, letâ€™s just go through the basics. For details, manuals as aggregate demand homework answers you can get detailed idea.
How can we define aggregate demand?
Aggregate demand, also termed as AD is the aggregate of all the total products and goods of an economy within a specific time. Then it can be referred to as the aggregate demand of that particular period. It can also be said to be as the total GDP of a state or a region, depending on the basis of the calculation.
When plotted in a graphical way, the real output is often put in the horizontal or the x axis, on the y axis or the vertical axis; we measure the level of price of that.
As seen, it is plotted in this manner.
It is a downward sloping curve. The reasons for its characteristics are due to 3 effects:
These 3 have different types of effect that have given rise to this unique feature of the aggregate demand curve. We will get to know how it affects it. But before that, it is also to inform you that if you need any type of help to solve for the aggregate demand homework answers, there are many sites that offer you this type of services.
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Factors for graphical representation:
Now let us know, how those above factors give a unique graphical diagram.
It can be said that the graphical curve that represents the aggregate demand actually provides a bridge between 2 factors
Aggregate demand is actually dependent on the money supply level which is mainly fixed and is generally nominal.
Shifting of the aggregate demand curve
Aggregate demand curve shifts due to several reasons.
Reasons for the shifting of the right and left of the aggregate demand curve:
In the above picture, we see how the aggregate demand curve shifts its location.
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