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In the last video, we started thinking a little bit about the aggregate demand curve and why it might be downward sloping and we actually reviewed some of the possible justifications for a downwards sloping aggregate demand curve, the wealth affect. Remember, all other things equal. Were not talking about changing the amount of money in peoples pockets or changing their outlook or changing their jobs or changing the level of investment, were just saying if prices were to just go down, all of a sudden people would have Theyd feel richer because they could buy more with what they have and so they might They might want to buy more, demand more and so those things would have to be produced and so real GDP would go up. Real GDP would go up and that was the Wealth Affect and likewise if prices went up, the opposite would happen. People would have less money or they would have the same amount of money in their pockets, but they could buy less with it and so they would demand less