A definition and formula for determining aggregate demand, with a brief description of each component of the formula.

By the end of this section, you will be able to do the following: Identify the neoclassical zone, the intermediate zone, and the Keynesian zone in the AD/AS model and Use an AD/AS model as a diagnostic test to understand the current...

If either the aggregate supply or aggregate demand curve shifts in the aggregate demand/aggregate supply-AD/A-model, the original equilibrium in the AD/AS diagram will shift to a new equilibrium. Increases and decreased in the price of...

The aggregate demand/aggregate supply, or AD/AS, model is one of the fundamental tools in economics because it provides an overall framework for bringing economic factors together in one diagram. These factors include economic growth,...

By the end of this section, you will be able to do the following: Explain the importance of potential GDP in the long run, analyze the role of flexible prices, interpret a neoclassical model of aggregate demand and aggregate supply, and...

By the end of this section, you will be able to do the following: Discuss why and how inflation expectations are measured, Analyze the impacts of fiscal policy and monetary policy on aggregate supply and aggregate demand. Explain the...

Practice what you've learned about the AD-AS model, aggregate demand shocks, and short-run aggregate supply shocks in this four-problem exercise.

Practice what you've learned about the long-run adjustment of output, employment, and prices to changes in aggregate demand and short-run aggregate supply in this exercise.

By the end of this section, you will be able to do the following: Explain Say's Law and determine whether it applies in the short run or the long run and Explain Keynes' Law and determine whether it applies in the short run or the long run.

Read about the differing macroeconomic perspectives of Keynes and Say.

"The Aggregate Supply Curve," by Baumol, William J., and Alan S. Blinder. Economics: Principles and Policy, 7th ed. Orlando, FL: The Dryden Press, 1997, pp.628-642.

This site is a short lesson on business cycles, aggregate demand, and aggregate supply. It has some good explanations of the terms.

By the end of this section, you will be able to do the following: Contrast expansionary monetary policy and contractionary monetary policy, explain how monetary policy impacts interest rates and aggregate demand, evaluate Federal Reserve...

This section provides 5 problems to solve pertaining to the information presented in Chapter 12: Neoclassical Perspective.

A definition of macroeconomic equilibrium and how it changes when either aggregate supply (AS) or aggregate demand (AD) shift. Many supporting graphs are provided to help explain this concept.

In this chapter, you will learn about the following: Aggregate demand in Keynesian analysis, the building blocks of Keynesian analysis, the expenditure-output or Keynesian cross model, the Phillips curve, the Keynesian perspective on...

This site describes demand-pull inflation, one of the main causes of inflation, and provides a graph that shows what occurs when aggregate demand rises.

Compare Keynes's and Say's law in the context of aggregate supply and demand.

Keynesian economics focuses on explaining why recessions and depressions occur and offering a policy prescription for minimizing their effects. The Keynesian view of recession is based on two key building blocks: recessions occur when...

In this exercise, practice using the graphical model of the Phillips curve.

This section provides 23 review study questions to aid understanding of the content in Chapter 11: The Keynesian Perspective from the Texas Gateway AP Macroeconomics online text.

In this chapter, you will learn about the following: The building blocks of neoclassical analysis, The policy implications of the neoclassical perspective, and Balancing Keynesian and Neoclassical models.

This section provides 16 study questions that require critical thinking skills. They cover the content presented in Chapter 11: The Keynesian Perspective from the Texas Gateway AP Macroeconomics online text.

This section provides a list of self-check study question to aid in understanding the content of Chapter 12: Neoclassical Perspective.