Principles of Macroeconomics / Unit 9 MAC 0834 short lesson, about 20 seconds
From Expenditure to Aggregate Demand
Captions available
The idea
Each expenditure line assumes one price level. Change it and the line moves, through unit eight's three effects, giving a different equilibrium output. Those pairs are the aggregate demand curve.
In practice
A lower price level lifts the line and raises equilibrium output: one point on the curve.
Where people slip
So autonomous spending moves aggregate demand by the multiplier times the shift.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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