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National income and price determination

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Aggregate demandShifts in aggregate demandLesson summary: aggregate demand
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MPC and multiplierMathy version of MPC and multiplier (optional)Tax multiplier, MPC, and MPSLesson summary: The expenditure and tax multipliers
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Short run aggregate supplyLesson summary: Short-run aggregate supply
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Long-run aggregate supplyLesson summary: long-run aggregate supply
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Short run and long run equilibrium and the business cycleAggregate demand and aggregate supply curvesInterpreting the aggregate demand/aggregate supply modelLesson summary: equilibrium in the AD-AS model
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Shifts in aggregate demandDemand-pull inflation under JohnsonReal GDP driving priceCost-push inflationShifts in aggregate demandShifts in aggregate supplyHow the AD/AS model incorporates growth, unemployment, and inflationLesson summary: Changes in the AD-AS model in the short run
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Long run self adjustment Lesson summary: Long run self-adjustment in the AD-AS model
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Fiscal policy to address output gapsCalculating change in spending or taxes to close output gapsTax lever of fiscal policyLesson summary: Fiscal policy
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Automatic stabilizersLesson summary: automatic stabilizers

About this unit

In this unit, you'll learn how the aggregate supply and aggregate demand model helps explain the determination of equilibrium national output and the general price level, as well as to analyze and evaluate the effects of fiscal policy. You'll also learn about the impact of economic fluctuations on the economy’s output and price level, both in the short run and in the long run.