The aggregate demand and supply model provides a comprehensive and intuitive explanation of changes in the price level, actual real GDP, and potential real GDP. Students will employ the AD-AS model to examine short-run cyclical changes in the economic and long-run changes in potential real GDP. The AD-AS graphs give the students an analytical tool by which to illustrate how changes in several economic variables and policy will impact important economic indicators and overall economic performance in the short run and long run.
Community College / Lower Division, College / Upper Division
Ohio TAG Social and Behavioral Sciences (OSS) Standards
Core OSS005 Outcome: Core skill demonstrated by students who successfully complete a Principles of Macroeconomics Course
Standard: Comprehend the determinates of important macroeconomic variables, including the level of income, the level of employment, the unemployment rate, the natural rate of unemployment, the price level, the inflation rate, productivity and the rate of interest