Apr 30 2012
A macroeconomic term referring to the sum of the economic activity undertaken by a nation’s households and firms in the product and resource market in a year. The circular flow model offers a graphical representation, showing the flow of money and resources in a nation. The aggregate demand / aggregate supply model is another graphical representation, showing the average price level, the level of output and the level of total demand and supply for a nation’s output.
About the author: Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author