Explain the effect of a decrease in aggregate demand

Reference no: EM13187654

Assume that keynesian model applies to the economy in the short-run. After the stock market fell sharply in 2008, the aggregate denabd decreased greatly around the world.
1) using the aggregate supply and aggregate supply (ad-as) analysis, explain the effect of a decrease in aggregate demand on the output and the price level.

Reference no: EM13187654

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