Unit 2B: Aggregate Expenditures Model

Before we get to the Aggregate Demand - Aggregate Supply Model, we will learn some of the important concepts and components by using the simpler AE model. With this model, we can pull out each component of GDP and graph then separately and see how they work independently.

Study Tools

Online Textbook Resources

Unfortunately, due to the age of the textbook, the publisher has removed all online content associated with our textbook. While we will use the book as an important source, the links given therein are no loner functioning. As a result, I will look online for other sources related to the topics in our text. Likewise, I encourage you to let me know of any useful websites that you come across in your studies so that I may add them to the site and share with everyone.

Videos

Video Link: Learner.org

• Economics U$A: The Great Depression and the Keynsian Revolution

  Nearly 30 minutes, this video analyzes the Great Depression and the Keynesian Policies attempted by FDR as well as President Kennedy's use of Keynesian theory.

  From the website, In 1932 President Herbert Hoover spoke enthusiastically about financial recovery while John Maynard Keynes expressed doubts. Keynes published The General Theory of Employment, Interest & Money in 1936, displaying ideas that later became the basis for public policy in Washington. Franklin D. Roosevelt did not generally trust economists, but his increased government spending during WWII proved Keynes's theories correct. These stories discuss the ideas of J.M. Keynes and how the theory behind Keynsian economics explained the Great Depression.

  If the video window does not pop up, in the windown that opens, scroll down to the title "17. The Great Depression and the Keynsian Revolution" and click the "VoD" icon on the right.

Copyright M. Caggia 2014