The aggregate demand curve AD2 displays a relatively aggressive monetary policy, while the curve AD3 displays a monetary policy completely unresponsive to changes in inflation.
Because an aggregate demand curve shows the total spending on domestic goods and services at each price level. The total demand for final goods and services in an economy at a given time. An increase in the money supply will ultimately lead to the aggregate-demand curve shifting to the right.
Aggregate are the inert materials that are mixed in fixed proportions with a Binding Material to produce concrete.
Domestic states that something related to the home or family, something occurring within a country.
Economy is an area of the production, distribution and trade, as well as consumption of goods and services.
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