27 March – IB Economics
• Review
• About the poverty cycle
• Start to examine 2.2 Aggregate Demand and
Aggregate Supply
What is the difference between demand and
aggregate demand?
Not enough!
Poverty Cycle
Low
Incomes
Low
Investments
Low Savings
Source: ib-economics-tgs.wikispaces.com
Source:
http://dineshbakshi.com/images/stories/economics_diagrams/poverty
-trap.jpg
CLOCKWISE!
Syllabus Items 82-83
• Distinguish between the microeconomic concept
of demand for a product and the macroeconomic
concept of aggregate demand.
• Construct an aggregate demand curve.
• Explain why the AD curve has a negative slope.
• Describe consumption, investment, government
spending and net exports as the components of
aggregate demand.
Durable vs. Non-durable Goods
Please list 5 durable and 5 non-durable goods
used in your household.
Syllabus
http://ibeconomics-isd.weebly.com/