June 02, 2003

IS/LM AS/AD

Derive the Aggregate Demand curve by changing P for a fixed money supply:

P6020050a.jpg

P6020053a.jpg

For a given price level, a change in G-T or in M shifts the AD curve:

P6020054a.jpg

How do we explain this data?

P6020061a.jpg


Posted by bparke at June 2, 2003 03:04 PM