Chapter 10: Aggregate Demand and Aggregate SupplyThis is a featured page

Aggregate Demand
  • AD Curve
    • real-balances effect
    • interest-rate effect
    • foreign purchases effect
  • Changes in AD
    • consumer spending
    • investment spending
    • government spending
    • net export spending

Aggregate Supply
  • AS in the long-run
  • AS in the short-run
  • Changes in AS
    • input prices
    • productivity
    • legal-institutional environment

Equilibrium and Changes in Equilibrium
  • Increases in AD: demand-pull inflation
  • Decreases in AD: recession and cyclical unemployment
  • Decreases in AS: cost-push inflation
  • Increases in AS: full-employment with price-level stability


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