Chapter 12 - Aggregate demand and aggregate supply. After reading this chapter, you should be able to: Define aggregate demand (AD) and explain the factors that cause it to change, define aggregate supply (AS) and explain the factors that cause it to change, discuss how AD and AS determine an economy''s equilibrium price level and level of real GDP,...
Trang 1Supply12
Trang 7long as interest rates and tax rates
do not change)
Trang 9price level
Trang 10P 1
0
Trang 13production costs
Trang 16costs
costs
Productivity = total outputtotal inputs
Trang 17output
Trang 18Price Level (Index Number)
Real Output Supplied (Billions)