ECON 101 Lecture : Intro to the AS-AD Model
Document Summary
Seasonal fluctuation scalar recurrent by seasons native and. Businesscycle recurrent fluctuations long run growth or decline a periodic fluctuations driven culture holidays periodic but not expansions r contractions in. Random functuation economic activity caused by political events one time events r natural t hard to phenomena considered predict a model that we want although we typically remove seasonal fluctuations from the so. We that we can see use the other fluctuations more can represent the as all clearly main way to represent these fluctuations data the. The aggregate demand curve is definition in diy space a representation of this. Consumption function households expenditures on new final goods services. C fe after tax income wealth interest rates expectedfutureincome expected wealth expected prices or inflation note doesn"t depend on current price level. Investment function purchases mostly by businesses of physical capital. I fi expected future profitsinvestment rates availability of credit or other funding.
