Aggregate Supply and Demand

Aggregate Demand and Supply Models

ECO 372

Aggregate Demand and Supply Models

Aggregate supply and demand are crucial theories in macroeconomics as they assist economists in deciphering events in the past to help forecast the future. The aggregate supply curve model shows the correlation between the total price level of a country, and the quantity of goods and services manufactured by the suppliers of that country. The aggregate demand curve model shows the quantity of goods and services made locally that consumers, businesses, the government and foreigners are willing to buy during a specific time period.

Part I - Analysis and Recommendations: Describe the current state of the following economic factors and analyze how each affects aggregate supply and demand....