Ch 60: CLEP Social Sciences and History: Aggregate Demand and Supply

About This Chapter

Use these video lessons and self-assessment quizzes to learn about aggregate demand and supply. Get information about sticky wages, favorable supply shocks, and marginal propensity to consume.

CLEP Social Studies and History: Aggregate Demand and Supply -- Chapter Summary

Use this chapter to learn about the Keynesian model of economics, shifts in labor supply and demand, and aggregate supply and demand by watching these video lessons. In these lessons, you will look over:

  • Different economy models
  • Aggregate supply and demand
  • Shifts in demand
  • MPC, GDP, and sticky wages

VideoObjective
Economy Models: Classical vs. Keynesian Compare the classical model of economics with the Keynesian model.
Understanding Aggregate Supply & DemandDescribe the meaning of aggregate supply and demand.
Understanding Shifts in Labor Supply and Labor DemandExplain the causes and effects of shifts in labor supply and labor demand.
Marginal Propensity to Consume: Definition and Formula of the MPCDefine and use the formula for marginal propensity to consume (MPC).
Government Spending, GDP, and Crowding Out Private InvestmentAnalyze government spending, gross domestic product, and crowding out private investment.
Sticky Wages and Prices: Effect on EquilibriumLook at sticky wages and prices and their impact on equilibrium.
Favorable Supply Shocks & Unfavorable Supply ShocksIdentify and interpret favorable and unfavorable supply shocks

7 Lessons in Chapter 60: CLEP Social Sciences and History: Aggregate Demand and Supply
Test your knowledge with a 30-question chapter practice test
Economy Models: Classical Vs Keynesian

1. Economy Models: Classical Vs Keynesian

In this lesson, we explore two important models that economists use to decipher capitalist economies and discuss when each is best used to describe the economy.

Understanding Aggregate Supply & Demand

2. Understanding Aggregate Supply & Demand

In this lesson, we explore aggregate supply and aggregate demand. In addition, we discover how economists represent these terms on a graph, using the AS/AD model.

Understanding Shifts in Labor Supply and Labor Demand

3. Understanding Shifts in Labor Supply and Labor Demand

Find out what the labor supply is and what causes it to change or shift. Learn about labor demand and what causes firms and markets to increase or decrease their demand for labor.

Marginal Propensity to Consume: Definition and Formula of the MPC

4. Marginal Propensity to Consume: Definition and Formula of the MPC

MPC or MPS, what category is higher when you have extra money? In this lesson, learn about the marginal propensity to consume, one of the most important assumptions underlying fiscal and monetary policy.

Government Spending, GDP, and Crowding Out Private Investment

5. Government Spending, GDP, and Crowding Out Private Investment

When the government spends more than it earns, it has to borrow money, which has repercussions throughout the economy. In this lesson, learn how government spending can crowd out private investment in the market for loanable funds.

Sticky Wages and Prices: Effect on Equilibrium

6. Sticky Wages and Prices: Effect on Equilibrium

With the help of real-world examples, this lesson explains Keynes' important observation that wages and prices often don't adjust quickly to changes in economic conditions

Favorable Supply Shocks & Unfavorable Supply Shocks

7. Favorable Supply Shocks & Unfavorable Supply Shocks

In this lesson you'll learn the definitions, causes and effects of the two types of supply shocks in the economy by looking at a fictitious economy as an example.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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