Mych09b_1 - Ch. 9 The IS-LM/AD-AS Model (Continued)...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch. 9 The IS-LM/AD-AS Model (Continued) The shift of  IS   Schedule The shift of  LM  Schedule The shock to General Equilibrium Monetary expansion, once-for-all and exponential 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Figure 9.3  Effect on the  IS  curve of a temporary increase in  government purchases 2 The shift of  IS   Schedule
Background image of page 2
6 Causes Effect Expected future Y                                  S(Y,  r) Given Y,  r Expected Wealth  Taxation  Government spending  Expected MPK   I(r)  Effective Tax on K   r Y I S 3 The shift of  IS   Schedule
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Figure 9.5  An increase in the real money supply  shifts the  LM  curve down and to the right The shift of  LM   Schedule
Background image of page 4
Figure 9.6  An increase in the real money  demand shifts the  LM  curve up and to the left The shift of  LM   Schedule
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Cause Effect Nominal Money  S. of real balance  Given Y, r  Price Level  Expected Inflation  D. for real balance  Nominal interest on $  Wealth     Risk of non-money  Liquidity of non-money  Efficiency in pay. Tech.  Y r The shift of  LM   Schedule
Background image of page 6
7 The shock to General Equilibrium Conceptual example: A temporary adverse supply shock A real life case: The oil shocks: 1973-1974 1979-1980
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 24

Mych09b_1 - Ch. 9 The IS-LM/AD-AS Model (Continued)...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online