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Unformatted text preview: along a curve and shifting a curve. Special Cases 1. Suppose Ü» àµŒ Ü¾Üº Then: When Ü¾ àµŒ Í³ , we have a 45 degrees line: Ü» àµŒ Üº . The relation between Y and X is 1:1. 2. If Ü» àµŒ Ü½ , any change in X has no effect on Y, graphically Note, I assumed a>0. The slope is equal to zero. 3. If Üº àµŒ Ü½ , any change in Y has no effect on X, graphically Note, I assumed a> 0. The slope is infinite. Y X Y = X b > 1 b < 1 Y X X Y a a...
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This note was uploaded on 01/12/2012 for the course ECON AS.180.101 taught by Professor Maccini during the Fall '08 term at Johns Hopkins.
 Fall '08
 Maccini
 Macroeconomics

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