Discussion Post
• How does the interest rate effect explain the slope of the aggregate demand (AD) curve?
• How does the wealth effect explain the slope of the aggregate demand (AD) curve?
• What is the difference between a movement along the aggregate demand (AD) curve and a shift of the aggregate demand curve? Explain in terms of what causes a movement and what causes a shift.
• What happens to investment spending when the price level rises? Explain and illustrate using a loanable funds market graph.
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.