find a similar real-life example and explain why did people pay different prices for the same goods? Did higher amount of money made it possible to buy more goods? What could increase the aggregate demand in the economy? What happens, if if there is increasing demand for goods and services, but supply remains unchanged? Please draw and explain aggregate demand and aggregate supply diagram, showing shift in aggregate demand, if the price level increases, but aggregate supply remains unchanged. What else can cause increase in the price level? What could trigger the increase in production costs in the country? What could trigger the increase the costs of factors of production? Please draw the aggregate demand and aggregate supply diagram, showing the shift in aggregate supply, if the costs of factors of production increase, but aggregate demand does not change. Definition Explanation Application (examples) Diagram
