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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.
- Spring '99