Handout5 - Any change in aggregate demand will consist of...

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Lecture 5 Outline Business cycle: Expansion: Recession: Depression: Characteristics of Business Cycles:
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Econ 1102 Page 2 of 6 Aggregate Demand Price level A B C D $10 40 40 10 10 $20 40 25 5 10 $30 30 25 0 5 In Macro we AGGREGATE demand and get AGGREGATE DEMAND Price level $10 $20 $30 Aggregate Demand Curve. In an economy, Aggregate Demand is composed of: 1. 2. 3. 4. Price level $10 40 40 10 10 $20 40 25 5 10 $30 30 25 0 5
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Econ 1102 Page 3 of 6 Why is Aggregate Demand Curve downward sloping? 1. 2. 3. Changes in Aggregate Demand/Aggregate Demand Shifters
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Unformatted text preview: Any change in aggregate demand will consist of two components: 1. 2. What things can cause a change in the determinants? 1. a. b. c. d. 2. a. b. 3. 4. . a. Econ 1102 Page 4 of 6 b. c. Aggregate Supply: 1. Short Run: 2. Long Run: Long Run Aggregate Supply Potential Output: Econ 1102 Page 5 of 6 Natural Rate of Output: Causes of Changes in LT Aggregate Supply 1. 2. 3. 4. Long Run AD-AS Equilibrium Econ 1102 Page 6 of 6 Short Run Aggregate Supply Why do prices matter? 1. 2. 3. Short Run AD-AS Equilibrium...
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Handout5 - Any change in aggregate demand will consist of...

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