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You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Get started now at: http://boundless.com/teaching-platform Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. If you have any questions or problems please email: educators@boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com About Boundless Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the world’s best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the company’s wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com. Free to share, print, make copies and changes. Get yours at www.boundless.com Aggregate Demand and Supply > Introducing Aggregate Demand and Aggregate Supply Introducing Aggregate Demand and Aggregate Supply • Explaining Fluctuations in Output • Classical Theory • Keynesian Theory Free to share, print, make copies and changes. Get yours at www.boundless.com www.www/boundless.com/economics?campaign_content=book_1515_section_107&campaign_term=Economics&utm_campaign=powerpoint&ut m_medium=direct&utm_source=boundless Appendix Free to share, print, make copies and changes. Get yours at www.boundless.com Aggregate Demand and Supply Key terms • economic output The productivity of a country or region measured by the value of goods and services produced. • Keynesian Economics A school of thought that is characterized by a belief in active government intervention in an economy and the use of monetary policy to promote growth and stability. • nominal Without adjustment to remove the effects of inflation (in contrast to real). • self-regulating Describing something capable of controlling itself. Free to share, print, make copies and changes. Get yours at www.boundless.com Aggregate Demand and Supply AS-AD Model This AS-AD model shows how the aggregate supply and aggregate demand are graphed to show economic output. The AD curve shifts to the right which increases output and price. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "AS AD graph." CC BY-SA http://en.wikipedia.org/wiki/File:AS_%252B_AD_graph.svg View on Boundless.com Aggregate Demand and Supply Adam Smith Adam Smith was one of the individuals who helped establish classical economic theory. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "Smith." Public domain http://en.wikipedia.org/wiki/File:Smith.gif View on Boundless.com Aggregate Demand and Supply John Maynard Keynes John Maynard Keynes introduced Keynesian theory in his book, The General Theory of Employment, Interest, and Money. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "John Maynard Keynes." Public domain http://en.wikipedia.org/wiki/File:John_Maynard_Keynes.jpg View on Boundless.com Aggregate Demand and Supply According to Hume, in the short run, an increase in the money supply will ________, and in the long run, an increase in the money supply will _________. A) decrease production; do nothing B) do nothing; increase production C) do nothing; decrease production D) increase production; do nothing Free to share, print, make copies and changes. Get yours at www.boundless.com Aggregate Demand and Supply According to Hume, in the short run, an increase in the money supply will ________, and in the long run, an increase in the money supply will _________. A) decrease production; do nothing B) do nothing; increase production C) do nothing; decrease production D) increase production; do nothing Free to share, print, make copies and changes. Get yours at www.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/ Aggregate Demand and Supply Classical economists assume that _________. A) All of these answers B) real GDP can be determined without knowing the money supply or rate of inflation C) real and nominal variables can be analyzed separately D) money affects only price and wage levels Free to share, print, make copies and changes. Get yours at www.boundless.com Aggregate Demand and Supply Classical economists assume that _________. A) All of these answers B) real GDP can be determined without knowing the money supply or rate of inflation C) real and nominal variables can be analyzed separately D) money affects only price and wage levels Free to share, print, make copies and changes. Get yours at www.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/ Aggregate Demand and Supply Suppose a government provided stimulus money to businesses in order to reverse an economic downturn. This action most closely aligns with which of the following economic schools of thought? A) Classical school B) Keynesian school C) Austrian school D) Rational expectations school Free to share, print, make copies and changes. Get yours at www.boundless.com Aggregate Demand and Supply Suppose a government provided stimulus money to businesses in order to reverse an economic downturn. This action most closely aligns with which of the following economic schools of thought? A) Classical school B) Keynesian school C) Austrian school D) Rational expectations school Free to share, print, make copies and changes. Get yours at www.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/ Aggregate Demand and Supply Attribution • Wikipedia. "Aggregate supply." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Aggregate_supply • Wikipedia. "Output (economics)." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Output_(economics) • Wikipedia. "Aggregate demand." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Aggregate_demand • Wiktionary. "economic output." CC BY-SA 3.0 http://en.wiktionary.org/wiki/economic+output • Wiktionary. "nominal." CC BY-SA 3.0 http://en.wiktionary.org/wiki/nominal • Wikipedia. "Classical economics." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Classical_economics • Wiktionary. "self-regulating." CC BY-SA 3.0 http://en.wiktionary.org/wiki/self-regulating • Wikipedia. "Austrian School." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Austrian_School • Wikipedia. "Chicago school of economics." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Chicago_school_of_economics#Discussion • Wiktionary. "Keynesianism." CC BY-SA http://en.wiktionary.org/wiki/Keynesianism • Wikipedia. "Keynesian economics." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Keynesian_economics • Wikipedia. "Keynesian Economics." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Keynesian%20Economics Free to share, print, make copies and changes. Get yours at www.boundless.com