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Unformatted text preview: 10. Baumol and Blinder, ch. 13, Discussion Question 4. 11. Explain how changes in the money supply affect output. Show all the steps. 12. Show how a fall in expected future income (which affects consumption) affects equilibrium output, the equilibrium price level, and the equilibrium interest rate. Don't worry about the effects over time, just show the short-run effects. Make sure to explain all the steps. 13. Baumol and Blinder, ch. 13, Discussion Question 6. 14. Explain the most important reason why the AD curve slopes down....
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This note was uploaded on 05/30/2010 for the course ECON 205 taught by Professor Kamrany during the Spring '07 term at USC.
- Spring '07