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1. On page 236 in the text (Figure 12.2), your author lists the many factors that may shift the aggregate demand curve of the U.S. economy. Which one (1) of these do YOU think is most critical to the current performance (Fall,2011) of the U.S. economy? WHY?
2. Explain how the three major factors discussed in the text can cause a shift in the aggregate supply curve.
3. What must occur to Aggregate Demand and Aggregate Supply in order for the U.S. economy to experience an increase in Real GDP,and at the same time, not experience a significant increase in the price level?
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