Question: In chapter 10 we are looking at an equilibrium where AD and AS cross. AD represents all that the different sectors of the economy (C+I+G+Net

In chapter 10 we are looking at an equilibrium where AD and AS cross. AD represents all that the different sectors of the economy (C+I+G+Net X) are demanding and what has been produced by all sectors (AS). Moving along the AD line/curve is a result of a change in the price level (inflation or deflation) but the shift of the AD curve represents more or less being demanded even though the price level remains the same.

In table 10-1 of the chapter you have a number of events that could shift the AD curve either in or out.

1- pick one of those events, explain what happens to consumption, jobs.....

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