APMac Unit 3 Lesson 1 - Aggregate Demand and Multipliers (Modules 16-17) by jclerch https://padlet.com/jclerch/iqluxehz7a6 National Income and Price Determination en-us 2017-01-01 17:34:22 UTC 2026-02-14 13:37:33 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/b2104b8cdd04ebab281a5161ab0321a8/IMG_12291_1mb.png jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/145179186 2017-01-03 21:43:56 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/145179186 Questions jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/245834468 1. What is aggregate demand, and how is it related to gross domestic product? 

2. Why is aggregate demand a downward sloping curve, demonstrating an inverse relationship between price level and aggregate output? 
]]> 2018-03-25 15:00:30 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/245834468 jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/277192302 2018-09-03 00:22:04 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/277192302 jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/277192316 2018-09-03 00:22:11 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/277192316 jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/324305286 2019-01-25 13:40:04 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/324305286 jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/324305311 2019-01-25 13:40:08 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/324305311 Essential Knowledge jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/372385341 The aggregate demand (AD) curve describes the relationship between the price level and the quantity of goods and services demanded by households (consumption), firms (investment), government (government spending), and the rest of the world (net exports).

The negative slope of the AD curve is explained by the real wealth effect, the interest rate effect, and the exchange rate effect.

Any change in the components of aggregate demand (consumption, investment, government spending, or net exports) that is not due to changes in the price level leads to a shift of the AD curve.

A $1 change to autonomous expenditures leads to further changes in total expenditures and total output.

The expenditure multiplier quantifies the size of the change in aggregate demand as a result of a change in any of the components of aggregate demand.

The tax multiplier quantifies the size of the change in aggregate demand as a result of a change in taxes.

The expenditure multiplier and tax multiplier depend on the marginal propensity to consume.

The marginal propensity to consume is the change in consumer spending divided by the change in disposable income. The sum of the marginal propensity to consume and marginal propensity to save is equal to one.
]]> 2019-07-26 13:24:56 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/372385341 Enduring Understanding jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/372385397 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 13:25:49 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/372385397 Learning Objectives jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/372385428 Define (using graphs as appropriate) the aggregate demand (AD) curve.

Explain (using graphs as appropriate) the slope of the AD curve and its determinants.

Define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save.

Explain how changes in spending and taxes lead to changes in real GDP.

Calculate how changes in spending and taxes lead to changes in real GDP.
]]> 2019-07-26 13:26:15 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/372385428 jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/409164130 2019-11-10 15:11:32 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/409164130 Introduction to U3 L1 jclerch https://padlet.com/jclerch/iqluxehz7a6/wish/1047875275 2020-12-31 21:39:22 UTC https://padlet.com/jclerch/iqluxehz7a6/wish/1047875275