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Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand
Copyright©2004 South-Western Figure 1 Equilibrium in the Money Market
Copyright©2004 South-Western Figure 2a The Money Market and the Slope of the Aggregate-Demand Curve
Copyright©2004 South-Western Figure 2b The Money Market and the Slope of the Aggregate-Demand Curve
Copyright©2004 South-Western Figure 3a A Monetary Injection
Copyright©2004 South-Western Figure 3b A Monetary Injection
Copyright©2004 South-Western Figure 4 The Multiplier Effect
Copyright©2004 South-Western Figure 5a The Crowding-Out Effect
Copyright©2004 South-Western Figure 5b The Crowding-Out Effect
Deriving AD From IS-LM Model. IS - LM LM curve is function of money demand, which is function of price level So each LM is associated with a given price.
Chapter 11: Aggregate Demand II. Fiscal Policy Initial equilibrium: IS 1 = LM 1 with Y 1 and r 1 Let G increase and/or T decrease IS increases, resulting.
Copyright © 2004 South-Western 21 The Influence of Monetary and Fiscal Policy on Aggregate Demand.
Aggregate Demand Module 17.
Principles of Macroeconomics
Copyright © 2010 Cengage Learning 9 The Influence of Monetary and Fiscal Policy on Aggregate Demand.
Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 4 Monetary and Fiscal Policy in the IS-LM Model.
2 SUPPLY AND DEMAND I: HOW MARKETS WORK. Copyright © 2006 Thomson Learning 4 The Market Forces of Supply and Demand.
Monetary and Fiscal Policies
M ONETARY P OLICY AND F ISCAL P OLICY ETP Economics 102 Jack Wu.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
Copyright © 2004 South-Western 5 Elasticity and Its Application.
The Influence of Monetary and Fiscal Policy on Aggregate Demand
Chapter 12 Slide 1 Figure 12-1 page 315 The IS* Curve Slide 2 Figure 12-2 page 316 The LM* Curve Slide 3 Figure 12-3 page 317 The Mundell-Fleming Model.
© 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair Prepared by: Fernando & Yvonn Quijano 12 Chapter PART IV MACROECONOMIC.
The Influence of Monetary and Fiscal Policy on Aggregate Demand Chapter 32 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Spec’n’ the Fed n What federal funds rate target will the FOMC set on Wednesday?
Copyright©2004 South-Western 9 Application: International Trade Application: International Trade.
Copyright©2004 South-Western 30 Money Growth and Inflation Money Growth and Inflation.
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