Aggregate Demand, Aggregate Supply and Inflation

Aggregate Demand, Aggregate Supply and Inflation - The...

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Econ 4.3 Wednesday, March 31, 1999 Announcements: Homeworks 8 is due on Friday. There will be review session in 262 Willard on Tuesday, 4/6, from 6:30 to 8 pm. The exam is Wednesday, 4/7. Lecture notes: Assett Value Annual Income / Interest Rate = Asset Value Chapter 14: Aggregate Demand, Aggregate Supply and Inflation Aggregate Demand represents the total demand for all goods and services in the economy
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Unformatted text preview: The Aggregate Demand Curve shows the negative relationship between aggregate output (income) and the price level . Each point on the AD curve is a point at which both the goods market and the money market are in equilibrium. The AD Curve is NOT a market demand curve AD = C + I + G As price level changes, AD curve shifts o Price Rises --> AD shifts down...
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This note was uploaded on 02/21/2008 for the course ECON 4.3 taught by Professor Fox during the Spring '99 term at Pennsylvania State University, University Park.

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