Chapter 12A: Appendix: Aggregate Demand and Aggregate Supply

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Aggregate Demand and Aggregate Supply12AAppendixMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.Derivation of Aggregate DemandPrice LevelAggregate Expenditures(billions of dollars)45°AE2 (at P2 ) AE3 (at P3 )AE1 (at P1 )Q3Q2Q1Real Domestic Product, GDPADP3P2P1123213LO1LO1LO1LO512App-*Aggregate Demand ShiftsAE2 (at P1 )AE1 (at P1 )Q1Q2AD1P1AD2LO512App-*