Economy, asked by XxFashionableLadkaxX, 5 hours ago

Derive AD curve from IS-LM model and Explain why AD curve slopes downward.
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Answers

Answered by ItzPrincessKabya01
5

Answer:

The AD curve represents IS-LM equilibrium points, that is, equilibrium in the market for both goods and money. It slopes downward because, as the price level increases, the LM curve shifts left as real money balances fall.

Explanation:

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