Problem 2.1: According to the aggregate demand curve, what is the effect on output or income of a drop in the price level? [Solution]

Problem 2.2: How does the Mundell-Fleming model explain the downward sloping aggregate demand curve? [Solution]

Problem 2.3: How does the Pigou model explain the downward sloping aggregate demand curve? [Solution]

Problem 2.4: How does the Keynes model explain the downward sloping aggregate demand curve? [Solution]

Problem 2.5: Explain the basics of the IS-LM model. [Solution]