Exploring Economics
Eighth Edition
Learning Objectives
- List and understand the determinants of aggregate demand.
- List and understand the reasons for a negatively sloped aggregate demand curve.
- List the main factors that shift the aggregate demand curve and distinguish between a shift in the aggregate demand curve and a movement along that curve.
- Explain what determines aggregate supply in both the short run and the long run.
- List and understand the main factors that shift the aggregate supply curve.
- Explain how the price level and real GDP are determined and what causes economic growth, inflation, and economic fluctuations.
- Discuss the classical and Keynesian macroeconomic models.