Aggregate Demand/Aggregate Supply Model
Due: Thursday, March 31
Instructions: The following questions are based on the assigned reading from OpenStax “Macroeconomics,” second edition. Upload your answers to Canvas as either a Word document (docx) or a PDF, by the start of class, Thursday, March 31. You may discuss the questions and concepts with classmates and others, but you cannot show your answers to them. Students must turn in their own work.
Draw a diagram showing all the components of the Aggregate Demand/Aggregate Supply model (AD/AS model), for an economy that is experiencing a recession.
Briefly explain each component of the model in your diagram.
In sections 11.3 and 11.4 in your textbook the authors list various changes that can cause a shift in the aggregate demand curve and the aggregate supply curve. Of the changes listed in the text, which of them are more likely to change in a way that will get the economy out of a recession? Explain.
Book Link: https://openstax.org/books/principles-macroeconomics-2e/pages/1-introduction
