Lecture 201 Aggregate Supply, Aggregate Demand
Aggregate Supply & Aggregate Demand Aggregate Demand. Intro Macro. Relation of the price level and the amount of real spending; Shifts: AD = C + Id + G + (X-IM) At a lower price level, more real spending; Wealth effect; At lower prices, nominal assets have more purchasing power; Interest rate effect; At lower prices, real money supply is greater; With money less scarce, the price of money (the