OVERVIEW: WEEK OF OCTOBER 21st

Topic

aggregatedemand.jpg

Now that you've gained a knowledge of how single markets work through the use of the individual model of supply & demand, we need another model to reflect the entire economy (GDP).

In this chapter, we begin our discussion of the aggregate demand and aggregate supply model to gain knowledge of the three states of an economy and the affects on an economy from not operating at equilibrium. Your knowledge of the three key issues of the macroeconomy, namely GDP, unemployment and inflation is critical here in understanding how an economy moves in and out of equilibrium. In other words, how the business cycle works.

Pay close attention to how equilibrium in the economy is reached both in the short-run and in the long-run. Review the examples that are given in the book. You will certainly be responsible for knowing how an economy moves back to equilibrium in both time frames.

Aggregate demand & aggregate supply is one of the most important concepts in macroeconomics. Make sure that you watch every single video provided this week, preferably in the order in which I have listed them. They will undoubtedly help you in understanding the material for this chapter.

Objectives

By the end of this week, you will be able to:

  • Describe the three states of an economy.
  • Differentiate between the short and the long run in macroeconomics.
  • Describe aggregate demand
  • Describe  aggregate supply
  • Apply the determinants of aggregate demand & aggregate supply
  • Articulate why the short-run aggregate supply curve slopes upward
  • Differentiate between the short-run aggregate supply curve and the long-run supply curve

Weekly Schedule

Due date Activity

Read Textbook through Chapter 11
Refer to Schedule Assignment: Relevant Study Guide Questions