About This Chapter
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.
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!
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.
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.
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.
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.
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.
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.
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.
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
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.
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Other chapters within the Geography, Government & Economics: Homework Help Resource course
- Environment & Population
- American Government Overview
- Important Documents & Speeches in US History
- Constitutional Democracy Overview
- Political Ideologies & Philosophy
- American Political Culture, Opinion & Behavior
- Understanding Civil Liberties in the U.S.
- Understanding Civil Rights in the U.S.
- Interest Groups & American Democracy
- Federal Bureaucracy in the U.S.
- The American Presidency
- The American Congress
- Federal Judicial System Overview
- Economics Overview
- Scarcity, Choice & Production
- Demand, Supply & Market Equilibrium
- Economic Measurement
- Federal Government & the American Economy
- Inflation Measurement & Adjustment