What you’ll learn12 learning objectivesChoose one objective for a focused lesson, or study the complete topic.4.3.1Aggregate Demand• Definition of Aggregate Demand (AD)Syllabus objective4.3.2AD components• Components of AD and their meanings: AD = C + I + G + (X - M)Syllabus objective4.3.3AD determinants• Determinants of AD (detailed knowledge of the components of AD is not required)Syllabus objective4.3.4AD curve shape• Shape of the AD curve (downward sloping)Syllabus objective4.3.5AD shifts• Causes of a shift in the AD curveSyllabus objective4.3.6Aggregate Supply• Definition of Aggregate Supply (AS)Syllabus objective4.3.7AS determinants• Determinants of ASSyllabus objective4.3.8SRAS and LRAS shape• Shape of the AS curve in the short run (SRAS, upward sloping line or sweeping curve) and the longSyllabus objective4.3.9AS shifts• Causes of a shift in the AS curve in the short run (SRAS) and in the long run (LRAS)Syllabus objective4.3.10AD/AS shifts vs movements• Distinction between a movement along and a shift in AD and ASSyllabus objective4.3.11AD/AS equilibrium• Establishment of equilibrium in the AD/AS model and the determination of the level of real output, the price level and employmentSyllabus objective4.3.12AD/AS shift effects• Effects of shifts in the AD curve and the AS curve on the level of real output, the price level and employmentSyllabus objective