Aggregate Supply and Demand - Revised
Learn how aggregate supply and demand helps economists interpret economic events, with this free economics course.
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CertificationView course modules
This course will first introduce you to the business cycle, where you will learn that the local economy is constantly expanding and contracting. You will see that this happens because it responds to changes in the global economy, technology, and national and international politics. You will then study the concept of aggregate demand, how it shifts, and how it is modeled. You will also look into aggregate supply, and learn why changes in supply can be slower than changes in demand.
You will then study how demand-pull inflation arises when the aggregate demand curve shifts to the right. You will learn that the productivity measure commonly reported through the media is based on the ratio of GDP to total hours worked in the economy during the measuring period. This course will also talk about the "long run", which is a period of time wherein firms are able to adjust or negotiate all costs associated with the business.
By the end of this course, you will have a much stronger understanding of the aggregate supply curve model and the aggregate demand curve model. These are both crucial tools for understanding the direction and status of a nation's local and global economy. Once you have a stronger grasp of these models and the differences between the short run and long-run supply, you will be much much closer to predicting potential changes and inflation in specific economies. That's an incredible skill, which you can start learning today.Start Course Now
Understanding Aggregate Supply and Demand
Understanding Aggregate Supply and Demand - Learning Outcomes
The Business Cycle
Shifts in Aggregate Demand
Long-Run Aggregate Supply
Short-Run Aggregate Supply
Demand-Pull Inflation Under Johnson
Real GDP Driving Price
Understanding Aggregate Supply and Demand - Lesson Summary
Having completed this course, you will be able to:
- Describe how supply and demand in the market affect the economy as a whole
- Discuss the difference between short run and long run supply
- Outline how economic models are compiled
- See how perceived wealth can affect our economy
- Describe how economic models can be used to indicate possible outcomes in the economy
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