Introduction to Macroeconomics

Chapter 9. Aggregate Demand and Aggregate Supply

Contents

1. Aggregate Demand
2. Aggregate Supply

The field of macroeconomics can generally be divided into two main areas or research:

1. theories that concern the short-run stability of the economic, commonly called business cycle theory, and

2. theories that concern the long-run growth rate of the economy, commonly called economic growth theory.

Aggregate Demand - total spending in an economy at various "average" price levels during a specified period of time. Aggregate Supply - total production in an economy at various "average" price levels during a specified period of time. Equilibrium - aggregate demand equals aggregate supply.

1. Aggregate Demand

File last modified: September 1, 2002

© Tancred Lidderdale (Tancred@Lidderdale.com)