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Why Does the Aggregate Demand (AD) Curve Slope Downward? What

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Why does the aggregate demand (AD) curve slope downward? What could cause the AD curve to shift to the right? What impact would a rightward shift of the AD curve have on the economy?


Definitions:

Privileges

Special rights or advantages given to a particular person or group.

LMX Theory

A leadership model focusing on the dyadic relationships between leaders and followers, emphasizing the importance of high-quality exchanges for leadership effectiveness.

Leader And Follower

A dynamic in groups or organizations where one person guides or influences others towards achieving a goal, while the followers support the leader in this pursuit.

Exchanges

Platforms or environments where goods, services, or assets are traded between parties.

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