ECON102: Principles of Macroeconomics

Upon successful completion of this unit, you will be able to:

• graphically represent and interpret a short-run aggregate supply curve, and explain why it slopes upward and factors leading to its shift outward or inward;
  
• define aggregate demand, and identify the reasons for its negative slope;
  
• explain the factors leading to a shift in the consumption function;
  
• define short-run equilibrium and long-run equilibrium, and discuss how they differ;
  
• describe the four phases of a business cycle, including references to income and real output;
  
• graphically represent and interpret a long-run aggregate supply curve, and explain its connection to natural level of unemployment; and
  
• describe how short-run equilibriums occur above and below the output level associated with the natural rate of unemployment