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Macroeconomics: Economic Fluctuations

3 important questions on Macroeconomics: Economic Fluctuations

What are the 3 categories of variables that shift the aggregate demand (AD) curve?

  1. Government policies
  2. Foreign variables
  3. Changes in expectations of households and firms

What tool do we use to analyze economic depression?

AD-AS Model

How to bring the economy out of recession?

  1. Keyness solution
  2. Supply-side solution

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The question on the page originate from the summary of the following study material:

EMBA: MARKETS AND ECONOMIES

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