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1. What are primary phases of the business cycle? 2. How does inflation affect the economy's level of real output? 3. How do changes in income affect consumption (and saving)? 4.What are factors other than income that can affect consumption? 5. 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? 6. What is aggregate supply (AS) and why does it differ in the immediate short-run, the short-run, and the long-run? 7.How do you apply the "extended" (short-run/long-run) aggregate demand (AD)-aggregate supply (AS) model to inflation, recessions, and economic growth? 8. What is the relationship between short-run aggregate supply and long-run aggregate supply?

Date Posted: 19/10/2018
Category: Business
Due Date: 20/10/2018
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Answer Each of the following questions in Q&A format (minimum 75 words).
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