Slide 11 Goods and of Financial Market : The IS- LM Model The Goods Market and The IS Relation Y= C (Y-T) + I + G Investment, Sales, and The Interest Rate I= I (Y, i) (+,…
Slide 1AE equilibrium At full employment, real GDP equals potential GDP and the unemployment rate equals the natural unemployment. Y = Y FE u c = 0 g 3% 2% u 5% Potential…
* Goods and of Financial Market : The IS-LM Model The Goods Market and The IS Relation Y = C (Y-T) + I + G Investment, Sales, and The Interest Rate I = I (Y, i) (+, -) Where…
Chapter 22 Chapter 22 Aggregate Demand and Supply Analysis 1 Aggregate demand is made up of four component parts: C = consumption expenditure, the total demand for consumer…