4Chp22-Econ3310 - Aggregate Supply V ×M P Equilibrium...

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Unformatted text preview: Aggregate Supply V ×M P Equilibrium Analysis Higher M shifts AD-curve to the right. At higher prices, there is less spending for a given money supply. Keeping V and M constant, real spending Y depends negatively on P: the AD-curve is downward sloping Y= Quantity Theory of Money Approach Aggregate Demand ...
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