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AP Macro-Economics Keys

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Unit 3 Managing the economy Steve Margetts Page 1 CONTENTS Aggregate Demand (AD) 2 Aggregate Supply 4 Equilibrium Between Aggregate Demand And Aggregate Supply 9 Consumption And Savings 11 Investment 17 Government Spending 25 Exports and Imports 29 Objectives Of Government Macroeconomic Policy 31 Inflation 34 Unemployment 50 Economic Growth 71 Balance of Payments 80 Conflicts Between Macro Economic Objectives 84 Demand Management or Supply Side? 87 Unit 3 Managing the economy Steve Margetts Page 2 AGGREGATE DEMAND (AD) Aggregate demand (AD) is the total demand for goods and services produced in the economy over a period of time. DEFINING AGGREGATE DEMAND Aggregate planned expenditure for goods and services in the economy =

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