Sunday, October 23, 2016

Aggregate Demand and Aggregate Supply (AD-AS Model)

Aggregate Demand (AD) Curve is the the curve that shows the level of real GDP purchased by households, businesses, government, and foreigners (net exports) at different possible price levels during a time period, ceteris paribus.

Source: Principles of Economics by Tucker.



On the other hand, Aggregate Supply (AS) Curve is the curve that shows the level of real GDP produced at different possible price levels during a time period, ceteris paribus.


Source: Principles of Economics by Tucker.
Non-price level determinants affecting the shift of AD ans AS are summarized below:


Source: Principles of Economics by Tucker

For my BS Econ 3B Class in  ECON 106 - Intermediate Macroeconomics, kindly download the solutions to your assignment and the e-copy of the ebook for the AD-AS Lecture.

Please Click--->>>>>Solutions to Assignment
Please Click--->>>>>AD-AS Model Lecture