AS-AD Model Part 1: Aggregate Supply and Aggregate Demand Curves

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The AS-AD (aggregate supply and aggregate demand) model has long been one of the workhorse models in undergraduate macroeconomics. In this video, I show how it can be motivated by i) aggregating over individual markets and ii) via the IS-LM model and the Phillips curve.

For adjustments dynamics from the short-run equilibrium to the medium-run equilibrium and for policy analysis within the AS-AD model, please refer to part 2 of the lecture:

  1. Klaus Prettner
  2. AS-AD
  3. aggregate demand
  4. aggregate supply
  5. AS curve
  6. AD curve
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Your explanation is really specific and intuitive, can you talk more about the AS curve using sticky price model and sticky wage model? Thank you so much

QingqingYang
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Please more videos, ❤❤❤ whole macroeconomics and microeconomics topics . I love the way how you teach 😊 it’s from books Oliver Blanchard, David 🫶🫶🫶 thank u a lot for your works ❤

Mood-uyvh