Aggregate demand/supply

Economic growth may be attained when either aggregate demand or aggregate supply shifts to the right.

  • What are the different effects between aggregate demand-based growth and aggregate supply-based growth?
  • What may shift aggregate supply to the right? Thoroughly explain its process.
  • As a policy maker, would you prefer the strategies of aggregate supply-based economic growth or aggregate demand-based growth? Why or why not?
  • As a proponent of either aggregate supply-based growth strategies or aggregate demand-based growth strategies, what would you recommend for the current U.S. economy to achieve stable economic growth?

 

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