Tuesday, February 21, 2017

2/21/17: AS & AD


  • The AS/AD Model
    • The equilibrium of AS & AD determines current output (GDPr) and the price level (PL).
  • Full Employment 
    • Equilibrium exists where AD intersects SRAS & LRAS at the same point.
  • Inflationary Gap
    • Output if high & unemployment is less than NRU
    • Actual GDP is above potential GDP
  • Recessionary Gap
    • Output low & unemployment is more than NRU
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1 comment:

  1. UnknownMarch 9, 2017 at 8:13 PM

    your blog is really good and i love the fact that you used pictures and videos to really help with your notes, i mean i really have nothing to say about this blog other than make sure next time to put what unit it is, so people will know that this is unit 3 and not unit 1 or 2. other than that there is not much else to say

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