MODULE 19: Equilibrium in the Aggregate Demand

Chapter Introduction

MODULE 19

Equilibrium in the Aggregate Demand–Aggregate Supply Model

Kurt Brady/Alamy

19Equilibrium in the Aggregate Demand–Aggregate Supply Model

192

In this Module, you will learn to:

Explain the difference between short-run and long-run macroeconomic equilibrium
Describe the causes and effects of demand shocks and supply shocks
Determine if an economy is experiencing a recessionary gap or an inflationary gap and explain how to calculate the size of an output gap