3. The Aggregate Demand Curve EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Value of Goods and Services (Y) Price Level (P) AD AD = C + I + G + X – M Y 1 Y 2 P 1 P 2 A B
4. Aggregate Supply Curve P P 1 A Y 1 B C AS Y 3 P 2 P 3 D P 4 Y F Y 2 E EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Value of Goods and Services (Y)
5.
6. Aggregate Demand and Supply EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Y P P 1 A AD 2 Y 1 B AD 1 AD 3 C AD 4 AS Y 3 P 2 P 3 D P 4 Y F Y 2 AD 5 E
7. The Trade/Business Cycle EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Time Economic Contraction or Recession Economic Growth or Boom National Income National Income
8.
9.
10.
11.
12.
13.
14. Macroeconomic Problems and Monetary Policy Solution. EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Macro-Economic Problem Monetary Policy Solution Economic Recession Expansionary Unemployment Expansionary Inflation Contractionary Current Account Deficit Contractionary Current Account Surplus Expansionary
15. Macroeconomic Problems and Fiscal Policy Solution EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Macro-Economic Problem Fiscal Policy Solution Economic Recession Expansionary Cyclical Unemployment Expansionary Demand – Pull Inflation Contractionary Current Account Deficit Contractionary Current Account Surplus Expansionary
16.
17.
18.
19. Supply – Side Policy Y P AD AS 2 Y 1 AS 1 Y 2 EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) P 1
![Aggregate Demand and Supply ,[object Object],[object Object],EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)