Explain the Intuition Behind Why the Aggregate Demand Curve Is

question 22

Essay

Explain the intuition behind why the aggregate demand curve is downward sloping.Why does an increase in the money supply shift the aggregate demand curve to the right?

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Definitions:

Textiles

Materials that are woven or knitted, typically used for making clothes and other objects.

Ironworks

A place where iron is smelted, forged, or processed into finished products.

Cotton Gin

Invented by Eli Whitney in 1793, the machine that separated cotton seed from cotton fiber, speeding cotton processing and making profitable the cultivation of the more hardy, but difficult to clean, short-staple cotton; led directly to the dramatic nineteenth-century expansion of slavery in the South.

Eli Whitney

An American inventor best known for inventing the cotton gin, a device that revolutionized the cotton industry.