Economics (McConnell) AP Edition, 19th Edition

Chapter 29: Aggregate Demand and Aggregate Supply (+ Appendix)

The content of this chapter may be included on the AP* Macroeconomics exam.

After reading this chapter, you should be able to:

1. Define aggregate demand (AD) and explain the factors that cause it to change.
2. Define aggregate supply (AS) and explain the factors that cause it to change.
3. Discuss how AD and AS determine an economy's equilibrium price level and level of real GDP.
4. Describe how the AD-AS model explains periods of demand-pull inflation, cost-push inflation, and recession.
5. (Appendix) Identify how the aggregate demand curve relates to the aggregate expenditures model.

AP Chapter 29 Introduction (11.0K)