TAILIEUCHUNG - Lecture Understanding economics (2nd edition): Chapter 11 - Mark Lovewell, Khoa Nguyen

Chapter 11 - Economic fluctuations. In this chapter you will: Learn about aggregate demand and the factors that affect it, analyze aggregate supply and the factors that influence it, study the economy’s equilibrium and how it differs from its potential. | Understanding Economics Chapter 11 Economic Fluctuations Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 2nd edition by Mark Lovewell and Khoa Nguyen Chapter Focus In this chapter you will: learn about aggregate demand and the factors that affect it analyze aggregate supply and the factors that influence it study the economy’s equilibrium and how it differs from its potential Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. Aggregate Demand (a) Aggregate demand (AD) is the relationship between the general price level and real expenditures (. total spending) in an economy is shown using a schedule or curve * Aggregate Demand (b) Figure , Page 260 Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 0 650 700 750 800 40 80 120 160 200 Aggregate Demand Curve Real GDP (1992 $ billions) Price Level (GDP deflator, 1992 = 100) Aggregate Demand Schedule .

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