Chapter 15. Dynamic Model of Aggregate Demand and Supply Link to syllabus Chapter 14. Dynamic Model of Aggregate Demand and Supply

Figure 14-1, p. 416. Federal Funds Rate: Actual and Suggested

Figure 14-2. p. 419. The Dynamic Aggregate Supply Curve

Table 14-1 p. 417. Variables in the Model

Fig 14-3 p. 421. Dynamic AD Curve Table 14-1 p. 417. Variables in the Model

Fig. 14-4 p. 422. Short Run Equilibrium

Fig 14-5 p. 423. An Increase in the Natural Level of Output

Fig 14-6 p. 424. A Supply Shock Fig 14-6 p. 424. A Supply Shock

Fig 14-7 p. 426. Dynamic Response to a Supply Shock

Fig 14-8 p. 428. A Demand Shock. Fig 14-9 p. 428. A Demand Shock.

Fig. 14-9 p. 429. Response to a Demand Shock

Fig. 14-10 p. 430. A Reduction in Target Inflation

Fig. 14-11. Dynamic Response to a Reduction in Inflation

Fig 14-12 p. 433. Two Possible Responses to a Supply Shock With a flat or a steep AD curve Fig 14-12 p. 433. Two Possible Responses to a Supply Shock. With a flat or a steep AD curve

Fig. 14-13, p. 437 The Importance of the Taylor Principle