Showing posts with label aggregate demond. Show all posts
Showing posts with label aggregate demond. Show all posts

Thursday, 18 March 2010

aggregate demand

Today we talked about aggregate demand
AD = G + C + I (X - M)
We need to know the four macroeconomics aims of government policy.
1. reduce unemployment
2. reduce inflation
3. balance of payment
4. growth
There are three policies
1. fiscal
2. monetary policy
3. supply side
There are five key diagrams and they all use aggregate demand and aggregate supply