The reason why the aggregate demand curve sloping upward to the right because of the money supply is constant, lower prices, resulting in LM curve moving to the right, the market interest rates, investment levels increase, national income increases; and vice versa.
Aggregate demand curve changes on equilibrium national
income and prices
① underemployed aggregate supply curve
Changes in aggregate demand lead to changes in equilibrium of national income in the same direction, while the equilibrium price unchanged.
② Short-term aggregate supply curve
Changes in aggregate demand, leading to a balanced income and price changes are into the same direction.
③ long-term aggregate supply curve
Changes in aggregate demand lead to changes in equilibrium price in the same direction, while the balance of national income unchanged.
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