Page 52 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 52
Session Unit 4:
15. Aggregate Output, Prices & Economic Growth, p.52
LOS 16.i: Describe how fluctuations in aggregate demand and aggregate supply cause short-run changes in the
economy and the business cycle, p. 66
LOS 16.j: Distinguish between the following types of macroeconomic equilibria: long-run full employment, short-
run recessionary gap, short-run inflationary gap, and short-run stagflation, p. 66
LOS 16.k: Explain how a short-run macroeconomic equilibrium may occur at a level above or below full
employment, p. 66
Inflationary gap
SRAS from overtime
and delay equipment
Recessionary gap maintenance
• Classical vs Competition for workers,
• Keynesian! Materials and energy will
shift SRASo to SRAS1
