Chapter 10 Macro Equilibrium
Return to Quick Economics Notes Updated 5/22/19  
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I. Macro Equilibrium    II. Aggregate Demand    III. Aggregate Supply

IV. Static and Dynamic Equilibrium     V. Videos, Readings, Major's Stuff

 I. Macro Equilibrium



As prices drop, the amount of real gross domestic product purchased (AD) increases.  AD = C + I + G + XN   Like all demand curves, AD increases to the right  and decreases to the left. Will this cause continued sloe growth in AD and resulting GDP?




III. Aggregate supply (AS) 







Like all supply curves, AS increases to the right and
decreases to the left. Will less investment affect
the rate AS increases?

IV. Static equilibrium AD/AS intersect   

V. Dynamic equilibrium depicts changes in  AD and AS over time

A. GDP grows to Q'. B. Prices increase to P'.     


  B.   Dynamix Equilibrium Examples 4 min. video


V. Videos, Readings and Stuff for Econ Majors

     A. Demonstrations 
          AD, AS, and Long Run Aggregate Supply- ACDC Economics
Aggregate Demand and Aggregate Supply model
The Aggregate Demand and Aggregate Supply Model  
          by Dennis Kaufman of the University of Wisconsin-Parkside

      B. Lucas critique is a criticism of econometric policy evaluation
          procedures that fail to recognize that optimal decision rules of
          economic agents vary systematically with changes in policy.

      C. Readings
           US macro disequilibria (Oct 2008)
           What is economic equilibrium explores a few kinds. 4/10/13, N. Smith

D. Videos for econ majors
      Crash Course in Non-Equilibrium Economics

      Non-Equilibrium Economics Schumpeter, Fisher and Keynes 5/5/14

      AD As at E

E. Podcasts

    Econ. Speakers       








Note: There are no Quick Questions questions associated with this chapter as the material will be reexamined and questions posed in the next few chapters.

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