Today we will study the concepts of short-run aggregate supply and general equilibrium. You should have read the text chapter identified below in the homework section and watched the related videos. We will start class today with you working cooperatively with a partner to find a solution to the "Problem of the Day" and then there will be a lecture on our next topic. This page contains all the information you need for today's class: homework, the problem of the day, helpful resources (videos, podcasts, etc.) and an explanation of the activities we will do in class. Use the table of contents on the right to help you navigate.
Read Mankiw (Chapter 33 - The Aggregate Supply Curve and Two Causes of Economic Fluctuations sections) and watch the following videos.
Problem of the Day: You will work cooperatively with your partner to construct a response to the following prompt.
Define aggregate demand.
Explain why the aggregate demand curve is downward sloping.
In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Explain what President Roosevelt might have been trying to achieve, using what you know about the concept of aggregate demand.
Lecture
Related Readings