Aggregate Demand and Aggregate Supply

Aggregate Demand and Aggregate Supply - Lecture #15...

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Econ 1110, Spring 2008, Professor Te 1 Lecture #15 Aggregate Demand and Aggregate Supply
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Econ 1110, Spring 2008, Professor Te 2 Aggregate Demand ( AD ) Curve IS - LM Intersection for Given Price Level P Negative Slope P increases M / P decreases (LM curve shifts left) excess demand for money/excess supply of bonds sell bonds bond price falls, interest rate increases C and I fall Factors That Shift the AD curve Anything that shifts IS - LM intersection for a given price level P
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Econ 1110, Spring 2008, Professor Te 3 LM 2 ( P = P 2 > P 1 ) F LM 1 ( P = P 1 ) E IS F E AD P 1 P 2 r P Y Y Y 2 Y 1 P increases M / P decreases LM curve shifts left Y decreases
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Econ 1110, Spring 2008, Professor Te 4 Aggregate Supply Curve Short Run SRAS is horizontal Long Run LRAS is vertical at Y Y =
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Econ 1110, Spring 2008, Professor Te 5 Price Level, P P 1 P 2 D AD SRAS 1 SRAS 2 LRAS E General Equilibrium in AD - AS Model Output, Y Y
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This note was uploaded on 04/15/2008 for the course ECON 1110 taught by Professor Tedloch-temzelides during the Spring '08 term at Pittsburgh.

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Aggregate Demand and Aggregate Supply - Lecture #15...

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