In order for a macroeconomic model to be useful, it needs to show what determines total supply or total demand for the economy and how total demand and total supply interact at the macroeconomic level. This model is called the aggregate demand/aggregate supply model. Review questions and problems are included.

Concepts

aggregate demand

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Additional Tags

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Classroom Considerations

• Knovation Readability Score: 4 (1 low difficulty, 5 high difficulty)