Ch 70: NMTA: Aggregate Demand & Supply

About This Chapter

Refresh what you know about aggregate supply and demand. Our video lessons help you prepare to answer these types of economics questions on the NES Middle Grades Social Science test, now used in place of the equivalent NMTA test.

NMTA: Aggregate Demand & Supply - Chapter Summary

In this chapter, our instructors examine the key concepts and models of supply and demand. Lessons cover the following topics:

  • Economic output and supply and demand curves
  • The Keynesian and classical models
  • Aggregate supply and aggregate demand model
  • Factors that lead to shifts in labor supply and demand
  • The marginal propensity to consume
  • Effect of government spending and borrowing on private investments
  • Determinants of supply on an aggregate level
  • Effect of short run changes on the equilibrium level of output
  • Sticky wages effects on equilibrium
  • Favorable and unfavorable supply shocks

Our experienced instructors break down complex topics into easier to understand components to help simplify the studying process. You can re-watch the video lessons or use video tags to quickly review the main ideas within the lesson. Take our lesson quizzes as a convenient tool to assess how well you grasped the concepts presented by the instructors.

NMTA: Aggregate Demand & Supply Chapter Objectives

The state of New Mexico requires teachers seeking a middle grades social sciences endorsement to take the NES Middle Grades Social Science test. Economics content constitutes approximately 12% of the test score and includes demand and supply concepts. Our chapter lessons and a multiple-choice chapter exam help you bone up on this area of economics for your test.

The test consists of 150 multiple-choice questions. The test is computer based and test sessions are 3 hours long.

10 Lessons in Chapter 70: NMTA: 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.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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Other Chapters

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

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