IB Diploma Economics:
Aggregate demand and Aggregate Supply

This section of the IB Economics course examines economic activity by modeling the the circular flow model, before turning attention to how economy’s total output and income can be measured. Growth in output and income are considered. Finally, the business cycle, which is a recurring pattern of increasing and decreasing economic activity are examined in the the overall level of economic activity topic in IB Economics.

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Aggregate Demand and Aggregate Supply  – Topics:

• Aggregate demand (AD) and the aggregate demand curve
  
• Short-run aggregate supply and short-run equilibrium in the AD/AS model
  
• Long-run aggregate supply and long-run equilibrium in the monetarist/new classical model
• Aggregate supply and equilibrium in the Keynesian model
  
• Shifting aggregate supply curves over the long-term
• Illustrating the monetarist/new classical and Keynesian models
• The Keynesian multiplier HL
  

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