Google
Thursday 
May 26, 2022 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
KEYNESIAN MODEL: A macroeconomic model based on the principles of Keynesian economics that is used to identify the equilibrium level of, and analyze disruptions to, aggregate production and income. This model identifies equilibrium aggregate production and income as the intersection of the aggregate expenditures line and the 45-degree line. The Keynesian model comes in three basic variations designated by the number of macroeconomic sectors included--two-sector, three-sector, and four sector. The Keynesian model is also commonly presented in the form of injections and leakages in addition to the standard aggregate expenditures format. This model is used to analyze several important topics and issues, including multipliers, business cycles, fiscal policy, and monetary policy.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson Contents
Unit 1: Instability
  • What It Is
  • Fluctuations
  • Unit 1 Summary
  • Unit 2: Extension
  • Instability
  • Self-Correction
  • Unit 2 Summary
  • Unit 3: Basic Shifts
  • AD Shifts
  • AD Increase: Long Run
  • AD Decrease: Long Run
  • AD Increase: Short Run
  • AD Decrease: Short Run
  • Unit 3 Summary
  • Unit 4: Complex Shifts
  • AD
  • AD Increase
  • AD Decrease
  • SRAS
  • SRAS Increase
  • SRAS Decrease
  • Unit 4 Summary
  • Unit 5: Synthesis
  • Business Cycles
  • Unit 5 Summary
  • Course Home
    Aggregate Shocks

    In this lesson we use the aggregate market model to analyze assorted disruptions that cause shifts of the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves. The reason for doing this, of course, is to explain and understand macroeconomic activity, especially business cycle instability that causes inflation and unemployment.

    • The first unit of this lesson reviews the aggregate market and examines how it is affected macroeconomic instability.
    • In the second unit, we take and look at assorted demands on both the demand side and supply side of the aggregate market that cause shorts to the aggregate market.
    • We then move into an analysis of six basic shifts involving increases and decreases in the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves.
    • The fourth unit builds on these six basic shifts to examine four complex shifts in which recessionary and inflationary gaps trigger self-correction adjustments of the short-run aggregate supply.
    • We close out this lesson in the fifth with a thought or two on how the aggregate market can be used to explain business cycle fluctuations.

    BEGIN Lesson =>


    <=PREVIOUS Lesson | NEXT Lesson =>

    PROPRIETORSHIP

    A business organization that is owned and operated by one person. The owner and the business are legally considered one and the same. As such, the owner receives any and all profit and is responsible for any and all debts, what is termed unlimited liability. A proprietorship is one of the three basic forms of business organization. The other two are partnership and corporation. A large number of proprietorships exist in the economy, but they tend to be relatively small operations.

    Complete Entry | Visit the WEB*pedia


    APLS

    GREEN LOGIGUIN
    [What's This?]

    Today, you are likely to spend a great deal of time watching the shopping channel looking to buy either a T-shirt commemorating the 2000 Presidential election or a really, really exciting, action-filled video game. Be on the lookout for pencil sharpeners with an attitude.
    Your Complete Scope

    This isn't me! What am I?

    Mark Twain said "I wonder how much it would take to buy soap buble if there was only one in the world."
    "Try not to become a man of success, but rather try to become a man of value. "

    -- Albert Einstein

    ACIR
    Advisory Council on Intergovernmental Relations
    A PEDestrian's Guide
    Xtra Credit
    Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

    User Feedback



    | AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
    | About Us | Terms of Use | Privacy Statement |

    Thanks for visiting AmosWEB
    Copyright ©2000-2022 AmosWEB*LLC
    Send comments or questions to: WebMaster