TAILIEUCHUNG - Lecture Principles of economics - Chapter 24: Aggregate demand, aggregate supply, and business cycles

This chapter develops the aggregate demand - aggregate supply model, then shows how it is used to analyze macroeconomic policy. In this chapter, students should be able to: Define the aggregate demand curve, explain why it slopes downward, and explain why it shifts; define the aggregate supply curve, explain why it slopes upward, and explain why it shifts; show how the aggregate demand curve and the aggregate supply curve determine output and the inflation rate over the business cycle. | Aggregate Demand, Aggregate Supply, and Business Cycles Chapter 24 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. Learning Objectives Define the aggregate demand curve, explain why it slopes downward, and explain why it shifts Define the aggregate supply curve, explain why it slopes upward, and explain why it shifts Show how the aggregate demand curve and aggregate supply curve determine output and the inflation rate over the business cycle Analyze how the economy adjusts to expansionary and recessionary gaps, and relate this to the concept of a self-correcting economy The Great Recession in . Began December 2007 Most lengthy and severe recession since the great depression Causes: Large housing price bubble burst in July 2006 30% decline in housing prices over next 18 months Financial panic in the fall of 2008 Difficult to borrow Oil price shock Gas hit $4 per gallon in July 2008 Aggregate Demand and Aggregate Supply Analyze fluctuations in

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Aggregate demand
• Aggregate supply
• Business cycles
• Long run equilibrium
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
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• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
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• Principles of microeconomics
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• Scarce resources
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• Principles of agricultural economics
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• Theory of consumer behaviour
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• Dynamics in demand analysis
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• Price elasticity of demand
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• Demand curves
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