, Main ideas
After studying this chapter, you will be able to:
• Explain what determines aggregate supply in the long run and in the short run
• Illustrate and discuss the factors that cause the aggregate supply curve to shift
• Explain what determines aggregate demand and illustrate the aggregate
demand curve
• Explain how real GDP and the price level are determined and how changes in
aggregate supply and aggregate demand bring economic growth, inflation and
the business cycle
• Describe the main schools of thought in macroeconomics today
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