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Chapter 11: Aggregate Demand and Supply: The Model of the Self-Correcting Economy Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved EXHIBIT 11.1 An Overview of Aggregate Demand And Supply Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-2 EXHIBIT 11.2 The Aggregate Demand Curve Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-3 EXHIBIT 11.3 Shifts of the Aggregate Demand Curve Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-4 EXHIBIT 11.4 The Short-Run Aggregate Supply Curve Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-5 EXHIBIT 11.5 Price Level Adjustments and the Individual Firm Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-6 EXHIBIT 11.6 Shifts of the Short-Run AS Curve Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-7 EXHIBIT 11.7 Equilibrium GDP and Price Level Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-8 EXHIBIT 11.8 The Effects of Changes in Aggregate Demand on Real Output and Prices Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-9 EXHIBIT 11.9 The Effects of Changes in Aggregate Supply on Real Output and Prices Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-10 EXHIBIT 11.10 Adjusting to Higher Aggregate Demand Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-11 EXHIBIT 11.11 Adjusting to lower Aggregate Demand Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-12 EXHIBIT 11.12 Shifts in the Long-Run Aggregate Supply Curve Introduction to Economic Reasoning, Eighth Edition William D. Rohlf, Jr. © 2011 Pearson Education, Inc. All Rights Reserved 11-13