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Economy contracts - PowerPoint PPT Presentation

Aggregate Demand and Supply, cont.

Aggregate Demand and Supply, cont. On a graph, price level (just like price) is on the vertical axis, while real GDP (just like quantity is on the horizontal. The Law of Demand and the Law of Supply apply just like they do in microeconomics.

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255 views • 16 slides

Module 21

Module 21. Fiscal Policy and The Multiplier. Multiplier Effects of an Increase in Government Purchases of Goods and Services. If consumption or Investment increases by $1, eventually that would multiply into more dollars of spending and income and real GDP.

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272 views • 10 slides

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Economy contracts - PowerPoint PPT Presentation

Aggregate Demand and Supply, cont.

Module 21