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Chapter 10: Aggregate Demand and Aggregate Supply
Aggregate Demand
Aggregate Supply
Equilibrium and Changes in Equilibrium
- 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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