Social Sciences and History / Unit 15 SSH 1411 short lesson, about 20 seconds
Not the Micro Diagram
Captions available
The idea
The AD/AS diagram superficially resembles the microeconomic supply and demand diagram, but its axes and its curves' reasons differ. Long-term growth appears as a gradual rightward drift of aggregate supply; a recession as an intersection substantially below potential GDP; expansion as one near potential.
In practice
Growth drifts; recession sits below potential.
Where people slip
Unit 13's curves are one market; these, the economy.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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