Purpose: The purpose of this assignment is to develop a deeper understanding of the
aggregate supply and aggregate demand model and to explain changes in equilibrium price
level, Real GDP and unemployment due to a shift in one of the curves.
Skills: Understand how to apply the aggregate supply and aggregate demand model, including
graph manipulation, changes in equilibrium price level, Real GDP and employment due to
shifts of aggregate supply or aggregate demand and real-world application. This assignment
should also help in the development of your written communication skills, including
organization, presentation and analysis.
Knowledge: Understand the causes of shifts in the aggregate supply and aggregate demand
curves as well as a deeper comprehension of what both aggregate supply and aggregate
demand represent. You will learn how to use it to evaluate changes in price level and Real
GDP in the economy due to changes in either aggregate supply or aggregate demand.
Task: Aggregate Demand and Aggregate Supply: Find two different newspaper articles, one
about an increase or decrease in Aggregate Demand and one about an increase or decrease in
Short-run Aggregate Supply (remember, the article has to be something that includes the
entire economy/all goods and services produced/Real GDP, not just one company or industry).
Explain what the article is about (one at a time) and why it is an example of AD or SRAS
shifting. In your analysis of each shift, explain why this article is an example of the shift and
explain what would be happening in the graph in detail, including changes in equilibrium
price level and Real GDP as a result of the shift. Include a graph for at least one of your
articles/explanations/examples. Please cite your articles. Be sure that you are using a
newspaper article (not an encyclopedia or tutorial) and that you are the one doing the
analysis. Minimum 250+ words.
Criteria for success:
1. Follow all instructions carefully.
2. Choose a newspaper or newsworthy article (avoid encyclopedia-type websites like
Investopedia or Wikipedia – they are not acceptable for this assignment)
3. Write the minimum writing requirement of 250+ words.
4. Make sure you explain the graph in detail in your analysis.
5. Include a graph, explain what is happening in the graph and how it relates to what is
happening in the newspaper article.
6. Use correct grammar and run spell check. Proofread your work for spelling errors and
7. Avoid plagiarism by doing your own writing. If plagiarism is detected, you will receive a
score on zero on this assignment (25% or higher Turnitin plagiarism score).
8. Get help if you need it: you can always e-mail me at [email protected] and set up a
Zoom appointment to get help with your assignments.
9. Start with the graph below and show/explain which curve is shifting per the article and also
explain the outcome, i.e., changes in price level and Real GDP.
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