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Class notes econ 112 (ECON112) Principles of Microeconomics, ISBN: 9781260326475

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Class notes econ 112 (ECON112) Principles of Microeconomics, ISBN: 6475 Chapter 5 Aggregate Demand & supply Sayremacro10e In this macroeconomic 112 principles of macroeconomic chapter 5 aggregate demand & supply tutorial you will learn, how to explain why AD goes up when economic income rises, and when it goes down. You will be able to describe the difference between real GDP, nominal GDP, and the GDP deflator which is the measure of inflation.I will also show you how to use a multiplier to find out how much a change in investment spending will affect national income. Lastly, I will teach you what are some common reasons for changes in national output.

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Institution
Capilano University (CapU )
Course
Econ 112 (ECON112)











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Connected book

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John E. Sayre, Alan James Morris Principles of Microeconomics
  • 2021
  • 9781260326475
  • Unknown

Written for

Institution
Capilano University (CapU )
Study
Business
Course
Econ 112 (ECON112)
All documents for this subject (2)

Document information

Uploaded on
October 26, 2022
Number of pages
93
Written in
2022/2023
Type
Class notes
Professor(s)
Chau
Contains
All classes

Subjects

  • chapter 5
  • principle of economic
  • macroeconomic
  • aggregate demand
  • aggregate supply
  • sayre
  • sayremacro10e
  • sayre macro
  • sayremacro
  • principle of macroeconomic
  • aggregate demand and supply

Content preview

Aggregate Demand & Supply

, Aggregate Demand (AD)
— Total quantity of final goods and services that
consumers, businesses, government, and those living
outside the country would buy at various prices
real am price levels
level Q RGRP demanded
Relationship
+
• between price

Ct I -1 Gt ✗☒
AD =




PAD
Real GDR

,Aggregate Demand
— Why is the AD downward sloping?
-

Real -
balance effect
-
Interest rate effete
-




Foreign
-
trade effect

, Bank account RGRP = real GDI


IL =
Price level

IL = 100 12=50


① =
10 QRGRP
=
20
Rape



nominal wealth real wealth
=



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