Explaining Business Cycles


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:

Macro 3.1: Aggregate Demand Practice

Macro 3.2: Aggregate Supply Practice

Another take on Aggregate Demand and Aggregate Supply

— Complete the (short) Study Guide:



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s