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Aggregate Supply and Demand - Revised

Learn how aggregate supply and demand helps economists interpret economic events, with this free economics course.

Economics
Free Course
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 modeling aggregate supply and demand and why a single event can have a significant effect on these models.
  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    Khan Academy

Description

Outcome

Certification

View course modules

Description

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.

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Learning Outcomes

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

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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