Economics > LECTURE NOTES > Aggregate demand/Aggregate supply (All)

Aggregate demand/Aggregate supply

Document Content and Description Below

The AS/AD model of macroeconomic equilibrium beyond the short-run From PAE line to AD curve The factors driving changes in inflation Macroeconomic self-adjustment in the long run Role, tools and e... ffectiveness of macroeconomic stabilization policies The aggregate demand curve: relationship between inflation (the rate of change in the price level) and short-run equilibrium output Equilibrium output = planned expenditure => the AD curve shows the relationship between inflation and expenditureding/output in the short run The AD curve is downward sloping=higher inflation lowers planned expenditure and short-run equilibrium output The AD curve and the PAE line We can derive the aggregate demand curve from the planned aggregate expenditure line by: Altering the price level in the aggregate expenditure model Linking together the equilibrium levels of GDP that can be derived from each aggregate expenditure line. As a result, the aggregate demand curve (AD) shows for each price level an equilibrium level of GDP where demand equals output (or where PAE = Y) [Show More]

Last updated: 1 year ago

Preview 1 out of 45 pages

Add to cart

Instant download

We Accept:

We Accept
document-preview

Buy this document to get the full access instantly

Instant Download Access after purchase

Add to cart

Instant download

We Accept:

We Accept

Reviews( 0 )

$2.00

Add to cart

We Accept:

We Accept

Instant download

Can't find what you want? Try our AI powered Search

OR

REQUEST DOCUMENT
78
0

Document information


Connected school, study & course


About the document


Uploaded On

Nov 27, 2019

Number of pages

45

Written in

Seller


seller-icon
Kirsch

Member since 4 years

907 Documents Sold


Additional information

This document has been written for:

Uploaded

Nov 27, 2019

Downloads

 0

Views

 78

Document Keyword Tags

Recommended For You

Get more on LECTURE NOTES »
What is Browsegrades

In Browsegrades, a student can earn by offering help to other student. Students can help other students with materials by upploading their notes and earn money.

We are here to help

We're available through e-mail, Twitter, Facebook, and live chat.
 FAQ
 Questions? Leave a message!

Follow us on
 Twitter

Copyright © Browsegrades · High quality services·