Problem
1. (Aggregate Demand and Aggregate Supply) Why does a decrease in aggregate demand result in a lower level of employment, given an aggregate supply curve?
2. (Aggregate Demand and Aggregate Supply) Is it possible for the price level to fall while production and employment both rise? If it is possible, how could this happen? If it is not possible, explain why not.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.