29 Aggregate Supply and Aggregate Demand

Photo shows a billboard outside a shop which reads “Circuit city: Going out of business”.

Why did the U.S. economy go into recession in 2008?

Chapter Checklist

When you have completed your study of this chapter, you will be able to

  1. 1 Define and explain the influences on aggregate supply.

  2. 2 Define and explain the influences on aggregate demand.

  3. 3 Explain how trends and fluctuations in aggregate demand and aggregate supply bring economic growth, inflation, and the business cycle.

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