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1. Explain why the aggregate demand (AD) curve is downward slopping (on the two dimensional price and output planes) in the neoclassical ASAD model. 2. Explain why the aggregate demand (AD) curve is downward slopping (on the two dimensional price and output planes) in the Post-Keynesian ASAD model. 3-4. In the neoclassical ASAD model, let us suppose that the interest rate has no effect on investment. What does this imply for (1) the slope of the IS curve, for (2) the slop of the LM curve, and for (3) the slope of the AD curve? (1) The slope of the IS curve- (2) The slope of the LM curve- (3) The slope of the AD curve- 5-6. In the neoclassical ASAD model, let us suppose that the interest rate has no effect on real money demand. What does this imply for (1) the slope of the IS curve, for (2) the slope of LM curve, and for (3) the slope of the AD curve? (1) The slope of the IS curve- (2) The slope of the LM curve (3) The slope of the AD curve 7-8. Using the Post-Keynesian alternative ASAD model, describe the following economic situations in the U.S: John F. Kennedy administrations expansionary tax cut in 1964 and the economic management during Vietnam War 9-10. Using the Post-Keynesian alternative ASAD model, describe the following economic situations in the U.S: The Oil Shock during the 1970s
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