Foundational Macroeconomics: Aggregate Demand and Supply

Why does the economy boom and bust? Understanding the forces that drive national economic performance is essential for analyzing markets and public policy. This course provides a solid foundation in macroeconomics by focusing on the Aggregate Demand and Aggregate Supply (AD/AS) model. You will gain the analytical skills necessary to interpret economic news and evaluate the potential impact of fiscal and monetary policy changes. What you'll learn: * Understand the components and determinants of Aggregate Demand and Aggregate Supply. * Learn how consumption and savings functions (APC, MPC, APS, MPS) drive household behavior. * Apply the expenditure multiplier concept to calculate the total impact of initial spending changes. * Analyze how short-run equilibrium determines national income and how shifts in AD/AS lead to inflation or recession. * Practice evaluating basic fiscal and monetary policy tools used to stabilize the economy. The material begins with foundational definitions of key macroeconomic variables and the components of national income. We then systematically build the AD/AS model, exploring the underlying behavioral functions and applying algebraic and graphical methods to analyze economic equilibrium and policy responses. This course is designed for absolute beginners interested in economics, finance, or public policy. No prior knowledge of economics or advanced mathematics is required. Start reading today and build your essential macroeconomic toolkit.