• Unit 3: Aggregate Demand and Aggregate Supply

    In this unit we explore the forces affecting growth, inflation, and unemployment at the aggregate level, such as output, income, or the set of components within GDP.

    Aggregate demand is the total amount of goods and services people want to purchase. It measures what people want to buy, rather than what is actually produced. The aggregate demand is the sum of consumption, investment, government expenses, and net exports. Aggregate supply is the total output an economy produces at a given price level. We consider aggregate supply in the short-run and in the long-run.

    Completing this unit should take you approximately 9 hours.

    • 3.1: Aggregate Demand

    • 3.2: Consumption, Investment, and the Aggregate Expenditures Model

    • 3.3: Aggregate Supply In the Short-Run and the Long-Run