【正文】
) The market for real money balances (b) The LM curveLM2slide 39CHAPTER 10 Aggregate Demand IExercise: Shifting the LM curve167。 Suppose a wave of credit card fraud causes consumers to use cash more frequently in transactions. 167。 Use the liquidity preference model to show how these events shift the LM curve. slide 40CHAPTER 10 Aggregate Demand IThe shortrun equilibriumThe shortrun equilibrium is the bination of r and Y that simultaneously satisfies the equilibrium conditions in the goods amp。 money markets: Y rISLMEquilibriuminterestrateEquilibriumlevel ofineslide 41CHAPTER 10 Aggregate Demand IThe Big PictureKeynesianCrossTheory of Liquidity PreferenceIScurveLM curveISLMmodelAgg. demandcurveAgg. supplycurveModel of Agg. Demand and Agg. SupplyExplanation of shortrun fluctuationsslide 42CHAPTER 10 Aggregate Demand IPreview of Chapter 11In Chapter 11, we will167。 use the ISLM model to analyze the impact of policies and shocks.167。 learn how the aggregate demand curve es from ISLM.167。 use the ISLM and ADAS models together to analyze the shortrun and longrun effects of shocks.167。 use our models to learn about the Great Depression.Chapter Summary1. Keynesian cross167。 basic model of ine determination167。 takes fiscal policy amp。 investment as exogenous167。 fiscal policy has a multiplier effect on ine.2. IS curve167。 es from Keynesian cross when planned investment depends negatively on interest rate167。 shows all binations of r and Y that equate planned expenditure with actual expenditure on goods amp。 servicesCHAPTER 10 Aggregate Demand I slide 43Chapter Summary3. Theory of Liquidity Preference167。 basic model of interest rate determination167。 takes money supply amp。 price level as exogenous167。 an increase in the money supply lowers the interest rate4. LM curve167。 es from liquidity preference theory when money demand depends positively on ine167。 shows all binations of r and Y that equate demand for real money balances with supplyCHAPTER 10 Aggregate Demand I slide 44Chapter Summary5. ISLM model167。 Intersection of IS and LM curves shows the unique point (Y, r ) that satisfies equilibrium in both the goods and money markets. CHAPTER 10 Aggregate Demand I slide 4