The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services.

Question

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The slopes of the aggregate demand and short-run aggregate supply curves are based on different economic principles than those for individual goods and services. Aggregate demand slopes downward due to the wealth effect, interest rate effect, and exchange rate effect, while the short-run aggregate supply curve slopes upward due to factors like wage rates, input prices, and productivity, which differ from the simple supply and demand dynamics of individual goods and services.

The Explanations for the Slopes of the Aggregate Demand and Short-Run