Question

Derive AD curve IS_LM model and explain why AD curve slopes downward.​

Answer 1

Answer:

To start with we derive the aggregate demand curve from the IS-LM model and explain the position and the slope of the aggregate demand curve. The aggregate demand curve shows the inverse relation between the aggregate price level and the level of national income. ... As a result the LM curve shifts upwards to the left.

Explanation:

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