Ch 70: NES: Aggregate Demand & Supply

About This Chapter

Let us help you review aggregate supply and demand for the National Evaluation Series (NES) Middle Grades Social Science exam. These lessons and quizzes are a fast and fun way to learn essential economics topics.

NES: Aggregate Demand & Supply - Chapter Summary

This chapter uses engaging video lessons and interactive practice quizzes to get you up to speed on aggregate supply and demand for the NES Middle Grades Social Science exam. You'll look at different models of economic supply and demand, and learn about some of the factors that affect supply and demand. By the end of the chapter, you'll have reviewed the following:

  • Classical and Keynesian economic models
  • Supply and demand curves in the Classical and Keynesian models
  • Shifts in labor supply and demand, and aggregate demand and supply models
  • Formula for marginal propensity to consume
  • Government spending and the gross domestic product
  • Factors that determine aggregate supply
  • Short run aggregate supply
  • Effect of sticky wages and prices on market equilibrium
  • Favorable and unfavorable supply shocks

Each lesson covers essential concepts in about ten minutes. Use the timeline tags to quickly jump to the topics you want to cover. Each lesson has a corresponding practice quiz you can use to test your understanding of the information covered.

NES: Aggregate Demand & Supply Objectives

Use the resources in this chapter to study for questions about aggregate supply and demand in the Economics subarea of the NES Middle Grades Social Science exam. This test section makes up approximately 12% of the total score. The test as a whole is made up of 150 multiple-choice questions on history, geography, culture, government and economics. You'll take the test electronically at a designated testing site. The NES Middle Grades Social Science exam is part of the licensure requirements for social science instructors in some states.

10 Lessons in Chapter 70: NES: 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

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Other Chapters

Other chapters within the NES Middle Grades Social Science (202): Practice & Study Guide course

Support