Macroeconomics (Course Guide)

eTextbook Readings | Principles of Economics | OpenStax

NOTE: Be sure to review key terms, concepts, questions, and problems at the end of each chapter!

Aggregate Supply Curve

Aggregate Demand Curve

How to Use the Aggregate Supply and Aggregate Demand Models

Do you understand how to...?

• evaluate the aggregate demand/supply model.
• analyze the relationship between total expenditures and the GDP
• identify conditions leading to inflationary and recessionary gaps
• identify the equilibrium levels of the GDP and price level based on the aggregate demand/supply mode
• examine factors that shift aggregate supply and aggregate demand
• illustrate economic growth, unemployment, and inflation using the ADS mode