Lesson Plan: Aggregate Demand and Aggregate
Supply
- I. Aggregate Demand
- - why is the AD downward sloping (revisited)?
- - shifts in AD
- - monetary policy
- - fiscal policy
- - autonomous changes in C, I or net exports
- - expectations
- II. Aggregate Supply
- - why is the AS upward sloping (revisted)?
- - money illusion
- - price lags
- - different ranges of the AS curve.
- - shifts in AS
- - what affects regular supply curves?
- - labor (or other resource) market shocks
- - expectations of inflation
- - government regulation/policy
- - monopoly power
- - external shocks
- - long-run AS versus short-run AS
- - what is the impact of an adverse supply shock in the
short and long-run?
- - demand pull inflation
- - cost push inflation