MACROECONOMIC EQUILIBRIUM: Putting it all Together

So, we have the aggregate supply curve and we have the aggregate demand curve.AD measures levels of production which won't change over time as a function of priceAS measures levels of production which suppliers will actually produce at as a function...

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Aggregate Supply

In the short run, we're going to assume that factor prices remain constant (but later on, this can change, as we look at the long run) The short run aggregate supply curve shows the amount which firms are willing to produce at any given price level. Aggregate...

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Aggregate Demand

ECON 101 HELL WEEK BLOG REVIEW: PART 1: DEMAND SIDE EXPENDITURE PART 2: SUPPLY SIDE EXPENDITURE PART 3: EQUILIBRIUM: PUTTING IT TOGETHER ---------------------------------------------------- PART 1: DEMAND SIDE EXPENDITURE We know that National Income...

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Putting it ALL together! Building and fiddling with aggregate expenditures!

 EQUILIBRIUM NATIONAL INCOME AND THE AGGREGATE EXPENDITURE FUNCTION: REMEMEBER: Consumption is a function of disposable income (income minus net taxes) and net taxes are taxes minus transfer payments.So, when you add the government to the economy,...

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