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In macroeconomics, based on the AS/AD model, what does it seem like the US economy is doing?

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Specifically, what is happening to the AD and AS curves in the US economy?

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  1. AD is falling due to fall in disposable income and rational expectations about economy future. Tax rebates and easy-money monetary policy supports AD from falling too deep (from shifting left too much).

    Short-run AS is shifted upward due to speculative supply shocks in food and energy (oil/gas) industries and also due to redistribution of demand so part of supply went to another countries.


  2. The stimulus package is intended to boost AD.  Look into Keynesian economics for more details.
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