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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This note was uploaded on 02/14/2012 for the course ECON 3310 taught by Professor Dix during the Fall '08 term at York University.
- Fall '08