• Summary
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  • Subject index

Interest in economics is at an all-time high. Among the challenges facing the nation is an economy with rapidly rising unemployment, failures of major businesses and industries, and continued dependence on oil with its wildly fluctuating price. Economists have dealt with such questions for generations, but they have taken on new meaning and significance.Tackling these questions and encompassing analysis of traditional economic theory and topics as well as those that economists have only more recently addressed, 21st Century Economics: A Reference Handbook is a must-have reference resource.Key FeaturesProvides highly readable summaries of theory and models in key areas of micro and macroeconomics, helpful for students trying to get a "big picture" sense of the fieldIncludes introductions to relevant theory as well as empirical evidence, useful ...

Aggregate Demand and Aggregate Supply
Aggregate demand and aggregate supply

The aggregate demand/aggregate supply (AD/AS) model appears in most undergraduate macroeconomics textbooks. In principles courses, it is often the primary model used to explain the short-run fluctuations in the macroeconomy known as business cycles. At the intermediate level, it is typically linked to an IS/LM model. The IS/LM model is a short-run model, and in intermediate macroeconomics classes, the AD/AS model serves as a bridge between the short run and the long run. Many economists find the model to be useful in thinking about the macroeconomy.

People often assume that textbooks present settled theory. It might therefore be a surprise to some that economists do not universally accept the AD/AS model. It has, in fact, been the ...

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