Ch. 11 Reading Guide

Due Wed. 12/3


1.  Illustrate the aggregate demand (AD) curve. How does each of the following explain the downward slope of the AD curve?
a.  Real-Balances Effect (wealth effect)
b.  Interest-Rate Effect
b.  Foreign Purchases Effect (net export effect)


2.  Create a chart to organize each factor affecting aggregate demand.  Columns should include:  definition of the factor, illustration of increase, illustration of decrease.






Due Mon.12/8


1.  Illustrate the Long Run Aggregate Supply (LRAS) curve.
2.  Why is the LRAS curve vertical?
3.  Explain the significance of long run equilibrium (where LRAS and AD meet).
4.  Create a chart identical to #2 from Wednesday's assignment for the factors affecting LRAS.








Due Tues. 12/9
1.  Illustrate the Short Run Aggregate Supply (SRAS) curve.
2.  Explain the slope of the SRAS curve.
3.  Explain the significance of short run equilibrium (where SRAS and AD meet)
4.  Create a chart identical to #2 from Wednesday's assignment for the factors affecting SRAS.