Macroeconomic Equilibrium and Shocks
Using the AD/AS model to determine equilibrium price levels and output, and analyzing the impact of shocks.
Key Questions
- Construct the AD/AS model to illustrate macroeconomic equilibrium.
- Predict the impact of demand shocks on equilibrium price level and output.
- Analyze how the economy adjusts to full employment in the long run after a short-run shock.
Common Core State Standards
Suggested Methodologies
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