1. The SIMPLE KEYNESIAN MODEL OF INCOME DETERMINATION 2. Session Outline Consumption and savings function Investment function Multiplier analysis (incl. Multiplier process)…
Slide 1 Slide 2 goods market The market in which goods and services are exchanged and in which the equilibrium level of aggregate output is determined. money market The market…
Slide 1Chapter 11 Monetary and Fiscal Policy Slide 2 11-2 Introduction In this chapter we use the IS-LM model developed in Chapter 10 to show how monetary and fiscal policy…
1.Macroeconomics December 17 20112. Aggregate Demand and Supply2 3. Aggregate Demand and Aggregate Supply»Some countries are rich and some are not! »Aggregate Demand and…
Macroeconomics 2012−13 (Murphy–DeMicco) This version: 13 March 2013 Page 1 of 27 Problem Set I Macroeconomics Academic Year 2012-2013 – BIEMF Solutions (To exercises…