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Explain What Happens in the Extended Aggregate Demand and Aggregate

question 121

Essay

Explain what happens in the extended aggregate demand and aggregate supply model when there
is a recession.


Definitions:

Place Utility

The value added to products by having them available at a location where they are needed or wanted by consumers.

Time

A continuous, measurable quantity in which events occur in a sequence from the past through the present to the future.

Sales Contract

A legally binding agreement between a buyer and seller which outlines the terms of sale for goods or services.

Car Dealership

A business that sells new or used cars at the retail level, based on a dealership contract with an automaker.

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