Determining Equilibrium Output, Price Levels, and Potential GDP

This video covers the following learning objectives:

✅ Use the AD-AS model to determine:

• Equilibrium Output (Real GDP)

• Equilibrium Price Level

✅ Define and explain Potential GDP as the economy’s full employment output level.
✅ Identify:

• Recessionary Gaps when Real GDP < Potential GDP (unemployment risk)

• Inflationary Gaps when Real GDP > Potential GDP (overheating, inflation)

✅ Use Excel to visualize AD-AS equilibrium, gaps, and potential GDP relationships.
✅ Analyze real-world examples demonstrating gaps, inflation trends, and economic stabilization efforts.
✅ Apply these concepts to financial markets, inflation forecasting, economic planning, and risk management.