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Aggregate Supply and Demand - Revised

Study how aggregate supply and demand helps economists interpret economic events with this free macroeconomics course.

Publisher: Khan Academy
Aggregate supply and demand are key concepts in macroeconomics. Determining the supply and demand for services can help economists interpret events in the past, provide a basis for price determination in a market, and even facilitate forecasts of the economy's future. This course will teach you the fundamentals of modelling aggregate supply and demand, and why a single event can have a significant effect on these models.
Aggregate Supply and Demand - Revised
  • Duration

    Hours
  • Students

    889
  • Accreditation

    CPD

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Description

Modules

Outcome

Certification

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Description

This course will introduce you to the business cycle, where you will learn that the local economy is constantly expanding and contracting 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 modelled. You will also look into aggregate supply and learn why changes in supply can be slower than changes in demand.

Go on to 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 (gross domestic product) to total hours worked in the economy during the measuring period. This course will discuss 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 and demand curve models. 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 them 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.

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