Aggregate Demand

2/1/2001


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Table of Contents

Aggregate Demand

Aggregate Demand

How Monetary Policy Influences Aggregate Demand

How Monetary Policy Influences Aggregate Demand

The Theory of Liquidity Preference

Money Supply

Money Supply

Money Demand

Money Demand

Money Demand

Equilibrium in the Money Market

Equilibrium in the Money Market

Equilibrium in the Money Market...

The Downward Slope of the Aggregate Demand Curve

The Downward Slope of the Aggregate Demand Curve

Changes in the Money Supply

Changes in the Money Supply

The Role of Interest-Rate Targets in Fed Policy

How Fiscal Policy Influences Aggregate Demand

Changes in Government Purchases

Changes in Government Purchases

The Multiplier Effect

A Formula for the Spending Multiplier

The Crowding-Out Effect

The Crowding-Out Effect

The Crowding-Out Effect

Changes in Taxes

Changes in Taxes

Using Policy to Stabilize the Economy

The Case for Active Stabilization Policy

The Case Against Active Stabilization Policy

Automatic Stabilizers

Summary

Summary

Summary

Summary

Summary

Summary

Author: Mark P. Karscig

Email: stutes@mnstate.edu

Home Page: web.mnstate.edu/stutes