Aggregate Demand and Aggregate Supply
By the end of this chapter, you will be able to:
- Define aggregate demand and explain why the aggregate demand curve has a negative slope.
- Identify seven factors that can shift the position of the aggregate demand curve.
- Describe how aggregate demand is affected by fiscal and monetary policy actions.
- Distinguish between the short run and the long run.
- Explain the slope and location of the long-run aggregate supply curve.
- Explain the slope of the short-run aggregate supply curve and its relationship to the long-run aggregate supply curve.
- Identify the factors that shift the long-run and short-run aggregate supply curves.
- Explain how the economy achieves short-run equilibrium.
- Outline the operation ...