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AB/204 AB204 AB 204 UNIT 8 DISCUSSION 2

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AB 204 UNIT 8 DISCUSSION 2 Unit 8: Aggregate Demand and Aggregate Supply – Discussion General Information: To be an effective learning tool the Discussion Board topics require your active discussion of the topic with at least two of your classmates. • First post made during, or before, Saturday. • Posts on at least 3 different days. • Responses to at least two other classmates. • Substantive posts that stimulate further active discussion, posts that accurately reflects the learning, that are logical, and clearly presented with correct spelling, word usage, and grammar. • To be counted as a substantial post, your main post to the Discussion topics should be at least 200 words per Discussion topic. Aggregate Demand and Aggregate Supply The Discussion topics deal with aggregate demand and aggregate supply, and the introduction to basic concepts in open-economy macroeconomics. The specific areas of discussions are the AS-AD model, AS and AD curves, macroeconomic goals, macroeconomic equilibrium, shocks in AS and AD demand, and key concepts in open-economy macroeconomics. Read Chapters 18 and 20, and remember to include references and links to the websites that you feel are important contributors to your posts (comments). Respond to two of the following Discussion topics. Topic 2 Macroeconomic goals and macroeconomic equilibrium are the key elements in macroeconomics. a. What are the long-run macroeconomic goals? What is long-run macroeconomic equilibrium? How the goals are relate to the macroeconomic equilibrium? b. Suppose that consumers and investors become pessimistic about the future health of the economy. What will happen to aggregate demand and to output?

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