Economists today are in a hot debate about the best way to model a national economy. You will be able to closely examine that debate in your college economics classes (what? Of course, you will take economics in college.) We are going to use one of the first, cleanest and still useful models – aggregate demand and aggregate supply. After this week you will be able to identify the causes of the recessions we looked at last week, how it played out through unemployment and inflation and possible solutions for different types of recessions.
Before next week:
— Complete Test 1. Will be collected at the beginning of class.
— Watch the following videos:
Another take on Aggregate Demand and Aggregate Supply
— Complete the (short) Study Guide: