Thursday, March 19, 2009
Aggregate Demand and Aggregate Supply
OBJECTIVES
Students shall be able to
1. Define aggregate demand and aggregate supply.
2. Give three reasons why the aggregate demand curve slopes downward.
3. Illustrate, label, and explain the three ranges of the aggregate supply curve.
4. State the determinants of the aggregate demand curve’s location.
5. Explain the shape of the aggregate supply curve.
6. Indicate the determinants of the supply curve’s location.
7. Explain how a market economy moves to equilibrium price and output level.
8. Predict effects of an increase in aggregate demand when economy is in (a) horizontal range, (b) intermediate range, and (c) vertical range.
9. Explain how the multiplier is weakened in the intermediate or vertical range of aggregate supply.
10. State three basic causes of changes in aggregate supply differentiating between leftward and rightward shifts of the curve.
11. Define and identify terms and concepts at the end of the chapter.
ACTIVITIES
Lecture/Discussion of the aggregate demand/aggregate supply model from McConnell chapter 11.
Assignments:
Take notes on the lecture.
Make sure you understand everything from the M&B chapter 11 PowerPoint (PPT or PDF file).
ASSESSMENT PROCEDURES
Monitor and adjust to check understanding.