By the end of this chapter, students should be able to:
- Describe the aggregate demand (AD) curve and explain why it slopes downward.
- Describe what shifts the AD curve and explain why.
- Describe the short-run aggregate supply (AS) curve and explain why it slopes upward.
- Describe what shifts the short-run AS curve and explain why.
- Describe the long-run aggregate supply (ASL) curve, and explain why it is vertical and what shifts it.
- Explain the term long term and its importance for policymakers.
- Describe the growth diamond model of economic growth and its importance.