Ch9.1_P28

Ch9.1_P28 - 3. T he Aggregate Demand Relation 28 The...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3. T he Aggregate Demand Relation 28 The aggregate demand relation, as stated in chapter adding the time indices becomes chapter 7, adding the time indices becomes: ⎛ Mt ⎞ AD Relation Yt = Y ⎜ Relatio , Gt , Tt ⎟ ⎝ Pt ⎠ Let’s focus on the relation between the real money stock and output. We ignore changes in output caused by other than ignore changes in output caused by other than changes in the real money stock, and the AD Mt relation becomes: Yt = γ Pt ...
View Full Document

Ask a homework question - tutors are online