Grade 9-12
,
Activity
Changes in Aggregate Supply/Aggregate Demand (ASAD)
Objective
Students will be able to:
- Determine how changes in AD/AS affect the price level and real GDP.
Standard
National Standards in Economics
Economic Fluctuations
Standard: 18
- Students will understand that: Fluctuations in a nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government agencies, and others in the economy. Recessions occur when overall levels of income and employment decline.
- Students will be able to use this knowledge to: Interpret media reports about current economic conditions and explain how these conditions can influence decisions made by consumers, producers, and government policy makers.
Concepts
In this economic activity, students will identify how changes in AD/AS affect the price level and real (GDP).
Procedure
This activity is an individual activity where students review the effect that aggregate demand and aggregate supply have on the price level and Real GDP. To complete this activity, students should follow the instructions below:
- Choose to either read through each illustration in the ASAD Changes Review or complete the ReadyAssessments Activity to determine if the price level and real GDP will increase, decrease, or stay the same.
- Find the answers here.