Referencing Styles : Harvard Question 1 Explain why real GDP might be an unreliable indicator of the standard of living. Question 2 Why does unemployment arise and what makes some unemployment unavoidable? Question 3 Consider the following statement: ‘When the average level of prices of goods and services rises, inflation rises’? Do you agree or disagree? Explain. Question 4 What is the aggregate demand (AD) curve and why does it slope downwards? Explain. Question 5 What is the long run aggregate supply (LRAS) curve and why is it vertical? Why does the short run aggregate supply curve slope upwards?