Figure 10.2 AS Pz AD2 P1 AD: Y2 In Figure 10.2: O the steepness of the aggregate supply curve determines how much inflation will materialize in the economy O a flatter aggregate supply curve will cause more inflation in the economy O a decrease in aggregate demand slows down the economy causing unemployment to decrease O an increase in aggregate demand causes an increase in inflation and a decrease in the rate of growth of GDP

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