LEARNING OBJECTIVE: a. Define (using graphs as appropriate) the aggregate demand (AD) curve b. Explain (using graphs as appropriate) the slope of AD curve and its determinants
TOPIC 3.2 Multipliers
LEARNING OBJECTIVE: a. Define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save b. Explain how changes in spending and taxes lead to changes in real GDP c. Calculate how changes in spending and taxes lead to changes in real GDP
TOPIC 3.3 Short-Run Aggregate Supply (SRAS)
LEARNING OBJECTIVE: a. Define (using graphs as appropriate) the short-run aggregate supply (SRAS) curve b. Explain (using graphs as appropriate) the slope of SRAS curve and its determinants c. Explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and inflation) and unemployment
TOPIC 3.4 Long-Run Aggregate Supply (LRAS)
LEARNING OBJECTIVE: a. Define (using graphs as appropriate) the short run and the long run b. Define (using graphs as appropriate) the long-run aggregate supply (LRAS) curve
TOPIC 3.5 Equilibrium in the Aggregate Demand–Aggregate Supply (AD–AS) Model
LEARNING OBJECTIVE: Explain (using graphs as appropriate) the short-run and long-run equilibrium price level and output level
TOPIC 3.6 Changes in the AD–AS Model in the Short Run
LEARNING OBJECTIVE: Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the short run
TOPIC 3.7 Long-Run Self-Adjustment
LEARNING OBJECTIVE: Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the long run
TOPIC 3.8 Fiscal Policy
LEARNING OBJECTIVE: a. Define fiscal policy and related terms b. Explain (using graphs as appropriate) the short run effects of a fiscal policy action c. Calculate the short-run effects of a fiscal policy action d. Define why there are lags to discretionary fiscal policy
TOPIC 3.9 Automatic Stabilizers
LEARNING OBJECTIVE: a. Define automatic stabilizers b. Explain how automatic stabilizers moderate business cycles
