Aggregate Demand and Supply Measuring the Whole Economy

Gross Domestic Product C+I+G+(x-m)= GDP

Comparing Supply and DemandAggregate supply and demand 1.Works the same 2. Illustrates whole economy not just one market 3. Determinants of change are different

Factors that can Cause a Shift 1.Consumer Spending 2.Business Investment 3.Government Spending 4.Exports 5.Imports

Activity #1 Increase-Shift to the right Decrease-Shift to the Left

1.Prices of Land,Labor,Capital 2.Productivity 3.Technology 4.Government taxes, subsidies, and regulation

Activity #2

EXIT TICKET The Congress is debating a change in the tax system which would result in an increase in taxes of about $1000 for working families. What effect would this change have on aggregate demand? Explain your answer.

What are the Effects of shifts in Aggregate Demand and Supply on the Macroeconomy?

What Causes a shift in the AD or AS Curve? Aggregate Demand Curve 1.Consumer Spending 2.Business Investment 3.Government Spending 4.Exports 5.Imports Aggregate Supply Curve 1.Prices of Land,Labor,Capital 2.Productivity 3.Technology 4.Government taxes, subsidies, and regulation,

What Causes a shift in the AD or AS Curve? Aggregate Demand Curve 1.Consumer Spending 2.Business Investment 3.Government Spending 4.Exports 5.Imports Aggregate Supply Curve 1.Prices of Land,Labor,Capital 2.Productivity 3.Technology,