AP Unit X: AS/AD Model

1. Aggregate demand (Scales Unit 10)
a. Determinants of aggregate demand
b. Multiplier and crowding-out effects
2. Aggregate supply
a. Short-run and long-run analyses
b. Sticky versus flexible wages and prices
c. Determinants of aggregate supply
3. Macroeconomic equilibrium
a. Real output and price level
b. Short and long run
c. Actual versus full-employment output
d. Business cycle and economic fluctuations

Readings: Module 16, 17, 18, 19, 21, 40
Assignment: p.216-219(#1,2,4,6-11, 13-16, 23, 24)
MC Section 4

Macro Viewpoints
Fiscal Policy

Practice Test