APMac Unit 3 Lesson 3 - Equilibrium in the Aggregate Demand Aggregate Supply (AD–AS) Model (Module 19) by jclerch https://padlet.com/jclerch/aa6cw7balg9o National Income and Price Determination en-us 2017-01-01 17:34:25 UTC 2026-01-29 14:42:56 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/8b68a3dff0662d84fe93ddb5d8aae387/IMG_12291_1mb.png jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/145179309 2017-01-03 21:45:28 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/145179309 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/170067962 2017-05-04 22:58:37 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/170067962 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/179962466 2017-08-02 16:30:13 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/179962466 Questions jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/245834261 1. Why is equilibrium at the natural rate of unemployment?

2. Can you accurately draw the ASAD model in a recessionary gap and explain what is happening to unemployment? 

3. Can you accurately draw the ASAD model in an inflationary gap and explain what is happening to inflation? 

4. Can you describe what happens with demand-pull inflation and cost-push inflation? 

5. Can you explain what will happen to the economy in disequilibrium in the long run, even without government involvement?
]]> 2018-03-25 14:58:39 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/245834261 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/265135973 2018-06-02 08:57:26 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/265135973 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/277192601 2018-09-03 00:24:32 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/277192601 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/277192812 2018-09-03 00:25:50 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/277192812 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/277192893 2018-09-03 00:26:27 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/277192893 Wage Growth jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/354907083 2019-04-29 07:13:30 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/354907083 Essential Knowledge jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/372385710 Short-run equilibrium occurs when the aggregate quantity of output demanded and the aggregate quantity of output supplied are equal—i.e., at the intersection of the AD and SRAS curves.

Long-run equilibrium occurs when the AD and SRAS curves intersect on the LRAS—i.e., at the full-employment level of real output.

The short-run equilibrium output can be at the full-employment level of output, above it, or below it, creating positive (i.e., inflationary) or negative (i.e., recessionary) output gaps.

A positive (negative) shock in AD causes output, employment, and the price level to rise (fall) in the short run.

A positive (negative) shock in SRAS causes output and employment to rise (fall) and the price level to fall (rise) in the short run.

Inflation can be caused by changes in aggregate demand (demand-pull) or aggregate supply (cost-push).
]]> 2019-07-26 13:30:08 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/372385710 Enduring Understanding jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/372386042 Economists use the aggregate demand–aggregate supply model to represent the relationship between the price level and aggregate output in an economy and to illustrate how output, employment, and the price level respond to macroeconomic shocks.]]> 2019-07-26 13:35:20 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/372386042 Learning Objectives jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/372386061 Explain (using graphs as appropriate) the short-run and long-run equilibrium price level and output level.

Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the short run.]]> 2019-07-26 13:35:33 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/372386061 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/409164305 2019-11-10 15:12:34 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/409164305 jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/429664161 2020-01-09 19:08:33 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/429664161 U3 L3 Introduction jclerch https://padlet.com/jclerch/aa6cw7balg9o/wish/1048813393 2021-01-02 13:33:22 UTC https://padlet.com/jclerch/aa6cw7balg9o/wish/1048813393