Aggregate Demand (AD)
First up, let's talk about Aggregate Demand, or AD. Now, don't confuse this with the microeconomic d
Shifters of Aggregate Demand
Okay, so we know what AD is and why it slopes down. But what makes this entire national shopping lis
Short-Run Aggregate Supply (SRAS)
Alright, we've talked about what the nation wants to buy. Now, let's talk about what the nation can
Shifters of Short-Run Aggregate Supply
Just like AD, the SRAS curve doesn't stay put! What makes businesses willing to produce more or less
Long-Run Aggregate Supply (LRAS)
Alright, now let's talk about the economy's TRUE potential! The Long-Run Aggregate Supply, or LRAS,
Equilibrium in the AD-AS Model
This is where the magic happens! We're bringing AD, SRAS, and LRAS all together to determine the eco
Changes in the AD-AS Model in the Short Run
Alright, what happens when the economy gets hit by a shock? This is where we use the AD-AS model to
Changes in the AD-AS Model in the Long Run (Self-Correction)
The economy doesn't stay in a short-run gap forever! This is where we learn about the economy's incr