12/02/16
Lesson 2: LRAS
Daily Objective: I can distinguish between SRAS and LRAS.
DA: List one reason which would shift the SRAS curve left or right.
Combining AD & AS in the short run:
Combining AD & AS in the short run:
|
New classical LRAS:
Monetarists "supply-side economists" and the Austrian school = Belief in the efficiency of market forces (minimum government)
|
Now let's combine the diagrams and discuss what happens when there are shifts in the AD:
|
|
Activity: Please replicate these shifts with your own particular justification of why the AD curve increases or decreases.