aggregate demand and aggregate supply flashcards quizlet
An increase in aggregate demand with constant aggregate supply will result in _____ employment levels. above-full. The interest-rate effect creates a downward sloping aggregate demand curve because a higher price level increases money demand which increases interest rates and decreases the amount of real GDP. Aggregate demand, aggregate supply, and the Phillips curve In the year 2023, aggregate demand and aggregate supply in the fictional country of Drooble are represented by the curves AD2023 and AS on the following graph. The price level is 102. The graph also shows two possible outcomes for 2024.