Aggregate Demand & Aggregate Supply Summary

Summary:

Aggregate simply means "sum of."  Thus, aggregate demand simply means the "sum of all demand" in an economy.  Aggregate demand and supply are the focal points of much of economic theory, practice, and contention.  Since aggregates are used to measure an economy, they are also the focal point of most economic problems.

Vocabulary:

Aggregate Demand, Aggregate Supply, Price Level, Real Output, Determinants of Aggregate Demand/Supply, Shocks

Skills:

Students will demonstrate how the economy is affected by changes in aggregate demand and supply.