Aggregate Supply and Aggregate Demand

1
Aggregate Supply and Aggregate Demand

• Chapter 11
• AS/AD

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Chapter 11 Figure 11.1
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Chapter 11 Figure 11.2
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Shifting the AD (Determinants of AD)

• Consumption
• Consumer Wealth
• Consumer Expectations
• Consumer Indebtedness
• Taxes on Consumption Spending or Consumer Income
• Gross Investment
• Interest Rates
• Profit Expectations by Firms
• Business Taxes
• Technology
• Excess Capacity
• Capacity Utilization Ratio Manufacturing only
• Government Spending
• Net Exports
• Foreign Income
• Exchange Rates

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Chapter 11 Figure 11.3
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Chapter 11 Figure 11.4
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Chapter 11 Figure 11.5
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Shifting the AS (Determinants of AS)

• Input prices
• Resource (land, labor, capital, entrepreneurial
  ability) availability
• Prices of imported resources (e.g., petroleum)
• Market power of resource providers
• Factor Productivity real output/inputs
• Technology
• Legal-institutional environment
• Business taxes/subsidies
• Government regulation

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Chapter 11 Figure 11.6
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Chapter 11 Figure 11.7
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Chapter 11 Figure 11.8
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Chapter 11 Figure 11.9
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Chapter 11 Figure 11.10
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Appendix Chapter 11 Figure 1(a)
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Appendix Chapter 11 Figure 1(b)
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Appendix Chapter 11 Figure 2(a)
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Appendix Chapter 11 Figure 2(b)