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Ch 17: Aggregate Demand & Supply

About This Chapter

Learn the important aspects of aggregate demand and supply in preparation for taking the MTEL History exam. Our video lessons and self-assessment quizzes give you different approaches to absorbing the material that make it easier to get the right answers to the test questions.

MTEL History: Aggregate Demand and Supply - Chapter Summary

There are several lessons in this chapter about aggregate demand and supply, and they can help you recollect what you learned about this subject in college. By using these lessons, you can prepare for the MTEL History exam. The video lessons cover these topics:

  • The Keynesian Model and the Classical Model
  • Supply and demand curves in both Keynesian and Classical models
  • Aggregate supply and aggregate demand model
  • Shifts in labor supply and demand
  • Marginal propensity to consume
  • Government spending, GDP and crowding out private investment
  • Aggregate supply
  • Sticky wages and prices
  • Favorable and unfavorable supply shocks

Our expert instructors review the key concepts and terms, highlighting the most important ones for easy remembering. By learning the concepts via different mechanisms, the likelihood is greater that you will absorb the material and retain it for the test.

Objectives of the MTEL History: Aggregate Demand and Supply Chapter

The MTEL History exam is a comprehensive exam evaluating your knowledge and understanding of all the areas that fall within the realm of history. You will need a passing grade in order to be licensed as a teacher in the Commonwealth of Massachusetts. The topics in this Aggregate Demand and Supply chapter fall within the Geography, Government and Economics objective of the test, which includes 25% of the test questions. You can improve your odds of getting these questions right on the exam by taking the self-assessment quiz that comes with the chapter.

The MTEL History exam is a computer-based-test (CBT) comprised of multiple-choice (80%) and open-response (20%) test items. The multiple-choice items will have you read a passage or question and select the correct answer from among several presented. The open-response items will have you compose a well thought-out essay demonstrating your ability to think clearly and logically, and in some depth, about historical topics.

10 Lessons in Chapter 17: Aggregate Demand & Supply
Test your knowledge with a 30-question chapter practice test
The Keynesian Model and the Classical Model of the Economy

1. The Keynesian Model and the Classical Model of the Economy

Economists use two basic models to describe economic growth. In this lesson, you'll find out more about each one of these models using real-world examples. So buckle up your seatbelts!

Supply and Demand Curves in the Classical Model and Keynesian Model

2. Supply and Demand Curves in the Classical Model and Keynesian Model

See how economists illustrate aggregate supply and aggregate demand in the long-term and short-term using the Classical and Keynesian models. This lesson emphasizes the differences in the shape of the aggregate supply curve using these two models.

Aggregate Supply and Aggregate Demand (AS-AD) Model

3. Aggregate Supply and Aggregate Demand (AS-AD) Model

Supply and demand models are useful for examining the behavior of one good or market, but what about looking at a whole economy? Luckily, the aggregate supply and aggregate demand model lets us do just that.

Understanding Shifts in Labor Supply and Labor Demand

4. 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

5. 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

6. 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.

Aggregate Supply in the Economy: Definition and Determinants

7. Aggregate Supply in the Economy: Definition and Determinants

Learn about one of the fundamental components of economics. Find out what aggregate supply is and seven of the most common areas that influence it in today's economy.

Aggregate Supply in the Short Run

8. Aggregate Supply in the Short Run

Learn about aggregate supply in the short run (SRAS) and what that really means. Find out how the overall price of goods affects quantity supplied in the short run and other key determinants that can increase and decrease aggregate supply in this time period.

Sticky Wages and Prices: Effect on Equilibrium

9. 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

10. 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.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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