Aggregate Demand and Supply

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Presentation transcript:

Aggregate Demand and Supply

Oldie 1. If the price of an item increases, demand for its substitutes A is unaffected B decreases C increases D there is no way to tell

Newer question 2. Which BEST describes an economy that is in a trough of the business cycle? A unemployment is high, real GDP is high, and inflation is low B unemployment is low, real GDP is high, and inflation is high C unemployment is low, real GDP is high, and inflation is low D unemployment is high, real GDP is low, and inflation is low

Newer question 3. If an economy is currently experiencing a contraction or recession, which stage of the business cycle will they experience next? A peak B trough C expansion D cyclical

Key 1. C 2. D 3. B

Welcome to the United States of Osborne (our economy) Survey- What do you buy and how often do you buy it? What would our GDP be? (add up all the costs) By the end of class you should be able to define aggregate demand, the components of it, and how it relates to GDP?