Aggregate Supply and Demand PowerPoint Presentation

Instructions: Make a PowerPoint presentation analyzing the impact of changes in the economy on unemployment and Real GDP. Before you start:

1. Understand what causes shifts in Aggregate Supply and Aggregate Demand, and understand how the model represents the phases of the business cycle.
2. Identify three factors that shift aggregate demand. Use one example each of Consumption, Investment, and Government spending. At least one of these examples should decrease Aggregate Demand.
3. Identify one factor that would shift Short-Run Aggregate Supply
4. Identify one factor that would increase Long-Run Aggregate Supply
5. Understand how a recession is represented on an Aggregate Supply/Aggregate Demand Graph and how to resolve it using Keynesian Economics.

Here is an outline of what your PowerPoint Presentation should include:

• Slide 1: Title: Analyzing the Economy Using the AS/AD model.
• Slide 2: Provide an AS/AD graph with an AD Line and SRAS Line.
• Slide 3 - 7: The next 5 slides should each include the following:
  • The title of the slide should explain what is causing the shift succinctly. (Ex. Average Home Values Rise by 5%)
  • Insert a graph showing an appropriate shift in AD, SRAS, or LRAS on one side of your slide
  • On the other side of your slide indicate the effect on Real GDP, Unemployment, and Price Level in the short run for all but the LRAS Shift. The LRAS shift should indicate what will happen to Real GDP and the Natural Rate of Unemployment.
  • Slide 3: Include a Slide representing a change in Consumption.
  • Slide 4: Include a Slide representing a change in Investment.
  • Slide 5: Include a Slide representing a change in Government Spending.
  • Slide 6: Include a Slide representing a change in SRAS.
  • Slide 7: Include a Slide representing a change in LRAS.
• Slide 8: A slide with the title "Recessionary Gap." Include a graph showing an economy in a recession on one side. On the other side, include a brief explanation of the economy's Real GDP and Unemployment Rate relative to full employment Real GDP.
• Slide 9: A Brief Explanation of how a Keynesian economist would suggest eliminating this recession.
• Slide 10: A slide showing the required shift to eliminate the recession on one side and the impact on Real GDP, Unemployment, and Price Level on the other side.

Please include resources for reference.