Macroeconomics activity and demand/Macro economy model

Kahn Academy Video's about unemployment.

Watch these Kahn Academy video's on Youtube. The first explains aggregate demand and aggregate supply; the second looks shifts in aggregate demand.

Aggregate Demand

Shifts in Aggregate Demand

Consider the following questions:

• What are the differences between aggregate demand and supply?
• What effects do shifts in aggregate demand cause?
• Do you see any shortcomings in the way this model explains effects on the economy?

Having viewed these videos, please address at least one of these questions on WENotes below.