Short-run equilibrium
Task: Short run equilibrium occurs where AD=SRAS, this may or may not coincide with the full employment level of equilibrium. If AD or SRAS change then so will the price level and the level of real income/output/GDP. You will be given a handout to show short run equilibrium and some tasks in which you will analyse the impact of various scenarios on the economy using AD/SRAS analysis. Equilibrium in the monetarist/new classical model
Task: You will receive another packet to address these objectives and will be practicing drawing graphs and using them to explain long-run equilibrium positions.
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Alternative views of aggregate supply - this is where there is controversy...
Once again you will be working from the Aggregate Supply packet to address the objectives above. The meaning of aggregate supply - we will watch the video above and you will be given a handout to complete
The AD curve
Aggregate demand is the total spending in an economy consisting of consumption, investment, government expenditure and net exports, i.e. the total quantity of output (Real GDP) that all buyers in an economy want to buy at different possible price levels (Average Price Level). You will be given some worksheets to do to address the objectives above, one of them linked to the video below: The business cycle - short-term fluctuations and long-term trend
Tasks:
Measures of economic activity: gross domestic product (GDP), and gross national product (GNP) or gross national income (GNI)
There is a good explanation of GDP in this Slate Magazine video "What is GDP?" You will continue working in the packet you were already given. Limitations in GDP measurement and in using GDP to compare countries Make notes under the following headings: (use p163-165 of textbook plus the handout you have already, p 223-225)
Green GDP Explain the meaning and significance of “green GDP”.
.The circular flow of income model
Today we start Macroeconomics.... let's start with an EconMovie to show how an economy works. We will then build up a model of the economy on the board and you will be given a worksheet to complete. Check out this physical model of the circular flow as well... the Moniac Machine |