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Aggregate Supply and Demand Course


Aggregate Supply and Demand
Aggregate Supply and Demand

Learn more about aggregate supply and demand.


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Course Description

Aggregate supply and demand are key concepts in macroeconomics as they help economists interpret events in the past to help predict the future. The aggregate supply curve model demonstrates the relationship between the overall price level of a country and the quantity of goods and services produced by the suppliers of that country, whereas the aggregate demand curve model demonstrates the quantity of goods and services produced domestically that consumers, businesses, the government and foreigners are willing to purchase during a particular period of time. This free online economics course first introduces the learner to the business cycle to show that the local economy is constantly expanding and contracting in response to changes in the global economy, technology and national and international politics. The course then introduces the concept of aggregate demand, how it shifts and how it is modelled. You will also learn about aggregate supply, and how changes in supply can be slower than changes in demand. This free online economics course will be of great interest to professionals in the areas of economics, finance, and business who would like to learn more about modelling aggregate supply and demand. It will also appeal to all learners interested in business, economics or political studies who would like to understand why the health of the economy is cyclical and why one event can have a significant effect on an economy.

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LEARNING OUTCOMES

Learning outcomes:
- Learn all in supply and demand in the market affect the economy as a whole;
- Understand the difference between short run and long run supply;
- Understand how economic models are compiled;
- Learn how perceived wealth can affect our economy;
- Understand how economic models can be used to indicate possible outcomes in the economy;

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Course Rating (By Learners): 4 stars based on 275 votes
Course Title: Aggregate Supply and Demand
Course #: 548
Course Publisher: Khan Academy
Course Category: 2
Content Origin:
Course Description: Aggregate supply and demand are key concepts in macroeconomics as they help economists interpret events in the past to help predict the future. The aggregate supply curve model demonstrates the relationship between the overall price level of a country and the quantity of goods and services produced by the suppliers of that country, whereas the aggregate demand curve model demonstrates the quantity of goods and services produced domestically that consumers, businesses, the government and foreigners are willing to purchase during a particular period of time. This free online economics course first introduces the learner to the business cycle to show that the local economy is constantly expanding and contracting in response to changes in the global economy, technology and national and international politics. The course then introduces the concept of aggregate demand, how it shifts and how it is modelled. You will also learn about aggregate supply, and how changes in supply can be slower than changes in demand. This free online economics course will be of great interest to professionals in the areas of economics, finance, and business who would like to learn more about modelling aggregate supply and demand. It will also appeal to all learners interested in business, economics or political studies who would like to understand why the health of the economy is cyclical and why one event can have a significant effect on an economy.
License: This course is available from Khan Academy OpenCourseWare through the following Creative Commons licence:
Creative Commons License
Release Date: 07 November 2012
Content  
Course Duration (Avg Learner): 1-2 Hours
Video/Audio: High
Audio Only: High
Animation: None
Assessments: Yes
Education Level
Age appropriateness: 18+ Years
Minimum Grade/Class Level: Post-Secondary
Validation: Level 5
ALISON Testing: Yes
Certification Availability
PDF Download: Yes
Parchment: Yes
Framed Certification: Yes

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  • Gbadamosi Olusegun
    Gbadamosi Olusegun Nigeria This tutorial looks at supply and demand in aggregate-from the perspective of the entire economy (not just the market for one good or service). Instead of thinking of quantity of one good, we think of total output (GDP). Very useful model for thinking through macroeconomic events. Aggregate demand Shifts in aggregate demand Long-run aggregate supply Short run aggregate supply Historical circumstances explained by AD/AS In the last tutorial, we claimed that the aggregate demand and aggregate supply model (AD-AS) would be useful for analyzing macroeconomic events. Well, in this tutorial, we'll do exactly that. Demand-pull inflation under Johnson Real GDP driving price Cost-push inflation The business cycle Economies never have a long steady march upwards. They constantly oscillate between growth and recession. This tutorial gives a little intuition for why that is. The business cycle Monetary and fiscal policy Governments (and pseudo government entities like central banks) have two tools at their disposal to try to impact the business cycle --monetary and fiscal policy. This will help you understand what they are. Monetary and fiscal policy Tax lever of fiscal policy Keynesian thinking Whether you love him or hate him (or just consider him a friend that you respect but disagree with every-now-and-then), Keynes has helped define how many modern governments think about their economies. This tutorial explains how his thinking was a fundamental departure from classical economics. Keynesian economics Risks of Keynesian thinking 2016-07-26 18:07:15
  • Emmanuel Asante Darko
    Emmanuel Asante Darko Ghana Aggregate demand (AD) is the total demand by domestic and foreign households and firms for an economy's scarce resources, less the demand by domestic households and firms for resources from abroadThe aggregate demand curve The AD curve shows the relationship between AD and the price level. It is assumed that the AD curve will slope down from left to right. This is because all the components of AD, except imports, are inversely related to the price level. For convenience, the AD curve is normally drawn as a straight line, though it can be argued that it is more likely to be non-linear, many suggesting it has a rectangular hyperbola shape. It is also claimed that the downward slope of the AD curve reflects 'normal' macro-economic conditions, and that in a deep recession, the AD curve could become vertical. 2016-07-20 19:07:58
  • HAJI SULEIMAN
    HAJI SULEIMAN Tanzania This topic is very good not only for school is goog for every where 2015-11-01 09:11:52
  • Amadou Rakia Ibrahim
    Amadou Rakia Ibrahim South Africa The aggregate supply curves shows the relationship between the nation overall price level and the quantity of goods and services produces by the nation suppliers.Aggregate supply institutional changes, such as the provision. 2015-08-11 10:08:19
  • Amadou Rakia Ibrahim
    Amadou Rakia Ibrahim South Africa Aggregates, demand is the total amount of demand that an economy has while aggregate supply is the total amount of supply an economy is capable of producing. The Curves,thats quite abit of power in one model.However,there is a hitch.since this is a whole economy,things move a bit more slowly.After all,if the demand for labor suddenly increases,its not like we can just clone fully grown and capable people,instead,economist use two supply curves,now,this may sound confusing,but let me explain.Economist may joke from time to time,that everything can be explain through demand and supply.Although this might not be entirely true.the point they are often trying to make is that supply and demand play an intergral role in many business decisions and experiences you have.understaning supply and demand in economics is important for building your knowledge in more advanced economic and business concepts.in a more advanced way aggregate supply is the total amount of goods and services produced and supplied by an economys firm over a specific period of time at given price levels.it is usually represented by a supply curve,which describe the relationship between price level and the quantity of out put that firm are willing to provide.It includes the supply of the followings types of goods consumers goods such as electronics,cloth vehicles,capital goods,these goods are things that help to prouce more consumer good for us. Publics Goods,these are goods and services that business supplyfor local. Traded goods,these are good and services that are often exported to other countries eg tires air plane,Although price can certainly have an effect on supply.there are other things that can also cause changes in the overall aggregate supply of goods and services Determinant Of Aggregate supply. changes in Labour force,Anything that causes the amount of workers to increase in an economy will cause aggregate supply to increase or shift to the right. 2015-08-11 09:08:14
  • kamal ahmed
    kamal ahmed Malta It's great 2015-07-05 02:07:53
  • Lina Sova
    Lina Sova Fiji Really good way of studying the basics 2015-06-23 05:06:11
  • Andy Phillips
    Andy Phillips United States of America Great module for someone who knows nothing about business trends. 2015-05-16 17:05:41
  • Anas Alghamdi
    Anas Alghamdi United States of America it was so amazing 2015-04-18 06:04:26
  • Ryan Williamson
    Ryan Williamson United Kingdom A good overview into Supply and demand within an economy 2015-03-23 21:03:04
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