What is the best way to teach aggregate supply to a principles of macroeconomics
class? I am currently using the 6th edition of Dolan and Lindsey's principles
text (as dictated by a committee) and it goes into great detail describing an
aggregate supply curve that is quite similar to the Lucas variety.
i.e., output = alpha + beta (actual price level - expected price level)
This seems a bit too complicated for a principles course, but seems more
consistent with the more advanced stories that students will hear when they
take additional courses.
How do other people teach aggregate supply in principles classes?
Paul Straub
Assistant Professor
Eastern Illinois University