AP ECONOMICS: February 21

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Presentation transcript:

AP ECONOMICS: February 21 Warm-up: Why do businesses tend to want to buy more capital when interest rates are lower on loans and savings? A.P. Economics Learning Target: In order to understand how equilibrium national output and price level are determined, I will analyze the nature of the aggregate supply (AS) curve. I will know I have it when I can: (1) explain why the AS curve shifts; (2) graph changes in AS and on an appropriately labeled AS graph; and (3) explain the implication for the AS curve when dealing with sticky prices and sticky-wages compared to flex-ible prices and wages. Module 18 (Aggregate Supply) Notes (HO) --SRAS basics --the SRAS curve shifters --Worksheet 18B (HO) group assignment Assignment: --read Module 19 --watch videos at Mr. Clifford’s web site (AC-DC Economics)