Aggregate Demand Shifts: Analyzing and Evaluating Impact on the Economy

Peter Jordan discusses aggregate demand shifts, focusing on their impact on the economy. He explains how to analyze these shifts using aggregate demand and supply analysis, and how to evaluate the outcomes. The video covers the unpredictability of timing and size of changes, potential conflicts in macro objectives, and the role of spare capacity using the Keynesian IS Curve. The session concludes with a preview of the next topic on AS shifts.

What is the main focus of the discussion regarding aggregate demand shifts?

Explain the importance of analyzing the impact of changes in aggregate demand on the economy.

What are the likely outcomes of a shift in aggregate demand according to the text?

Discuss the uncertainties associated with the timing and size of changes in aggregate demand.

How do macro objectives conflict in the short run as mentioned in the text?

What role does spare capacity play in the evaluation of aggregate demand shifts?

Summarize the key points made about the impact of aggregate demand shifts on inflation and trade deficits.