Equilibrium in the AD-AS Model
Students will use the Aggregate Demand-Aggregate Supply (AD-AS) model to illustrate macroeconomic equilibrium and analyze economic fluctuations.
Key Questions
- Explain how the intersection of AD and AS determines the equilibrium price level and real GDP.
- Analyze the impact of a negative supply shock on the AD-AS model.
- Predict the short-run and long-run adjustments to an economy experiencing a recessionary gap.
Ontario Curriculum Expectations
Suggested Methodologies
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