Macro diagrams and definitions
Government fiscal policy and the economy
National income
16. fiscal policy
Unit 4
C HAPTER 14 M ONEY AND THE E CONOMY. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible.
: Next page Copyright 2003 South-Western Thomson Learning. All rights reserved. Working With Our Basic Aggregate Demand/Supply Model Starter: Draw the.
I. AD/AS Model To Analyze changes in real GDP & price level simultaneously Provides insights on inflation, unemployment, & economic growth Aggregate.
AE equilibrium At full employment, real GDP equals potential GDP and the unemployment rate equals the natural unemployment. Y = Y FE u c = 0 g 3% 2% u.
AD and AS. AGGREGATE DEMAND (AD): The quantity of real GDP demanded (total quantity of G&S that all buyers in an economy want to buy) at different price.
Copyright © 2011 Pearson Addison-Wesley. All rights reserved. Chapter 11 An Introduction to Open Economy Macroeconomics.
MACRO. Domain Focus SSEMA1 The student will illustrate the means by which economic activity is measured.
