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Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. Shifters of Aggregate Demand. AD = C + I + G + X. Change in C onsumer Spending. Change in G overnment Spending. Change in I nvestment Spending. Net E X port Spending. Shifters of Aggregate Supply. AS = I + R + A + P.

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351 views • 23 slides
Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. Shifters of Aggregate Demand. AD = C + I + G + X. Change in C onsumer Spending. Change in G overnment Spending. Change in I nvestment Spending. Net E X port Spending. Shifters of Aggregate Supply. AS = I + R + A + P.

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319 views • 18 slides
Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. What type of gap and what type of policy is best? What should the government do to spending? Why? How much should the government spend?. Price level. The government should increasing spending which would increase AD, but

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235 views • 18 slides
Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. The Phillips Curve. The tradeoff between inflation and unemployment. What happens to inflation and unemployment when AD increase?. In general, there is an inverse relationship between unemployment and inflation. 3.

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906 views • 17 slides
Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. Shifters of Aggregate Demand. AD = C + I + G + X. Change in C onsumer Spending. Change in G overnment Spending. Change in I nvestment Spending. Net E X port Spending. Shifters of Aggregate Supply. AS = I + R + A + P.

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308 views • 17 slides
Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. The Phillips Curve. The tradeoff between inflation and unemployment. What happens to inflation and unemployment when AD increase?. In general, there is an inverse relationship between unemployment and inflation. 3.

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176 views • 17 slides
Unit 3: Aggregate Demand and Supply and Fiscal Policy 3-3

Unit 3: Aggregate Demand and Supply and Fiscal Policy 3-3

Unit 3: Aggregate Demand and Supply and Fiscal Policy 3-3. 1. Shifters of Aggregate Demand. AD = C + I + G + X. Change in C onsumer Spending. Change in G overnment Spending. Change in I nvestment Spending. Net E X port Spending. Shifters of Aggregate Supply. AS = I + R + A + P.

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258 views • 16 slides

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