Lecture 9 Aggregate Demand I: Building the IS–LM Model 1.

Slides:



Advertisements
Similar presentations
The Keynesian Cross Model, The Money Market, and IS/LM
Advertisements

Building the short run AD-AS model from the IS-LM framework
Chapter 10: Aggregate Demand I
Deriving AD From IS-LM Model. IS - LM LM curve is function of money demand, which is function of price level So each LM is associated with a given price.
Chapter 11: Aggregate Demand II. Fiscal Policy Initial equilibrium: IS 1 = LM 1 with Y 1 and r 1 Let G increase and/or T decrease IS increases, resulting.
Intermediate Macroeconomics
NUIG Macro 1 Lecture 17: The IS/LM Model (1) Based Primarily on Mankiw Chapter 10.
The Monetary Policy and Aggregate Demand Curves
The Goods Market and the IS Curve
Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 4 Monetary and Fiscal Policy in the IS-LM Model.
Chapter 11 Aggregate Demand, I.
Chapter Ten1 CHAPTER TEN Aggregate Demand I. Chapter Ten2 The Great Depression caused many economists to question the validity of classical economic theory.
CHAPTER 14 IS-LM Frame work & Equilibrium. Chapter Outline The IS-LM framework & equilibrium Development of the IS curve (from ch. 12 pg ) Development.
Macroeconomics fifth edition N. Gregory Mankiw PowerPoint ® Slides by Ron Cronovich CHAPTER TEN Aggregate Demand I macro © 2002 Worth Publishers, all rights.
In this chapter, you will learn:
Motivation The Great Depression caused a rethinking of the Classical Theory of the macroeconomy. It could not explain: Drop in output by 30% from 1929.
Copyright © 2010 Pearson Education. All rights reserved. Chapter 20 The ISLM Model.
The Keynesian Framework and the ISLM Model
Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand.
The Economy in the Short-Run
Copyright © 2010 Pearson Education. All rights reserved. Chapter 21 Monetary and Fiscal Policy in the ISLM Model.
In this chapter, you will learn:
IN THIS CHAPTER, YOU WILL LEARN:
NUIG Macro 1 Lecture 19: The IS/LM Model (continued) Based Primarily on Mankiw Chapters 11.
The Goods Market and the IS Curve
MACROECONOMICS © 2013 Worth Publishers, all rights reserved PowerPoint ® Slides by Ron Cronovich N. Gregory Mankiw Aggregate Demand I: Building the IS.
ISLM Analysis of the Open Economy (ISLMBP Analysis)
1 Quantity Theory of Money Velocity P  Y V = M Equation of Exchange M  V = P  Y Quantity Theory of Money 1. Irving Fisher’s view: V is fairly constant.
Eva Hromadkova PowerPoint ® Slides by Ron Cronovich CHAPTER TEN Aggregate Demand I macro © 2002 Worth Publishers, all rights reserved Topic 10: Aggregate.
Macroeconomics fifth edition N. Gregory Mankiw PowerPoint ® Slides by Ron Cronovich CHAPTER TEN Aggregate Demand I macro © 2004 Worth Publishers, all rights.
Chapter 23 The Keynesian Framework and the ISLM Model © 2005 Pearson Education Canada Inc.
The Economy in the Short-run
In this chapter, you will learn…
© 2008 Pearson Education Canada23.1 Chapter 23 Monetary and Fiscal Policy in the ISLM Model.
Copyright © 2011 Cengage Learning 33 Keynes and IS–LM Analysis.
Copyright 2005 © McGraw-Hill Ryerson Ltd.Slide 0.
© 2008 Pearson Education Canada23.1 Chapter 23 Monetary and Fiscal Policy in the ISLM Model.
Copyright © 2014 Pearson Canada Inc. Web Chapter THE ISLM MODEL Mishkin/Serletis The Economics of Money, Banking, and Financial Markets Fifth Canadian.
Chapter 4 Money, Interest, and Income. The goods market and the IS curve Goods market equilibrium: Investment and the interest rate:  Relaxing the assumption.
Chapter 23 The Keynesian Framework and the ISLM Model.
Review of the previous lecture 1. Keynesian Cross  basic model of income determination  takes fiscal policy & investment as exogenous  fiscal policy.
Chapter 7 Aggregate demand and supply: an introduction.
Chapter 21 Monetary and Fiscal Policy in the ISLM Model.
9.3 - The LM Curve : Asset Market Equilibrium - The Interest Rate and the Price of a Nonmonetary Asset - The Equality of Money Demanded and Money Supplied.
© 2008 Pearson Education Canada22.1 Chapter 22 The ISLM Model.
Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 the IS–LM model of aggregate demand.
Money Demand Money demand (demand for real balances) is influenced : positively by income.
Chapter 24 Monetary and Fiscal Policy in the ISLM Model © 2005 Pearson Education Canada Inc.
So far we understood how the goods and money market work in a partial equilibrium set up. Now we move towards a general equilibrium understanding of these.
Chapter 22 The Keynesian Framework and the ISLM Model.
Chapter 23 Monetary and Fiscal Policy in the ISLM Model.
Slide 0 CHAPTER 11 Aggregate Demand II Context for Studying Chapter 11  Chapter 9 introduced the model of aggregate demand and supply.  Chapter 10 developed.
© 2008 Pearson Education Canada22.1 Chapter 22 The ISLM Model.
IS-LM MODEL Eva Hromádková, VS EN253 Lecture 8 – part II.
Short-Run Effects of Money on Real GDP, and the Price Level Ripple Effects of Monetary Policy If the Fed increases the interest rate, three events follow:
Slide 0 CHAPTER 10 Aggregate Demand I In Chapter 10, you will learn…  the IS curve, and its relation to  the Keynesian cross  the loanable funds model.
LECTURE NOTES ON MACROECONOMICS ECO306 SPRING 2014 GHASSAN DIBEH.
Chapter 24 Monetary and Fiscal Policy in the ISLM Model.
You will learn the IS curve, and its relation to
Chapter 22 The Keynesian Framework and the ISLM Model.
The Influence of Monetary and Fiscal Policy on Aggregate Demand
Monetary and Fiscal Policy in the ISLM Model
The ISLM Model of Aggregate Demand
Aggregate Demand 7-2 The aggregate demand relation captures the effect of the price level on output. It is derived from the equilibrium conditions in.
ISLM analysis.
The Keynesian Framework and the ISLM Model
FIGURE 14.1 Change in the Price Level and the Effect on the Money Market
Presentation transcript:

Lecture 9 Aggregate Demand I: Building the IS–LM Model 1

Lecture 9. Aggregate Demand I: Building the IS–LM Model 2 Shifts in Aggregate Demand

3 The Goods Market and the IS Curve The Keynesian Cross Lecture 9. Aggregate Demand I: Building the IS–LM Model

4 The Goods Market and the IS Curve The Keynesian Cross Lecture 9. Aggregate Demand I: Building the IS–LM Model

5 The Goods Market and the IS Curve The Keynesian Cross Lecture 9. Aggregate Demand I: Building the IS–LM Model

6 The Goods Market and the IS Curve Government-purchases multiplier Lecture 9. Aggregate Demand I: Building the IS–LM Model

7 The Goods Market and the IS Curve Government-purchases multiplier Lecture 9. Aggregate Demand I: Building the IS–LM Model

8 The Interest Rate, Investment, and the IS Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

9 How Fiscal Policy Shifts the IS Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

10 How Fiscal Policy Shifts the IS Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

11 The Money Market and the LM Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

12 The Money Market and the LM Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

13 Case Study: Did Monetary Tightening Raise or Lower Interest Rates? Lecture 9. Aggregate Demand I: Building the IS–LM Model

14 Deriving the LM Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

15 How Monetary Policy Shifts the LM Curve Lecture 9. Aggregate Demand I: Building the IS–LM Model

16 Conclusion: The Short-Run Equilibrium Lecture 9. Aggregate Demand I: Building the IS–LM Model

17 Conclusion: The Short-Run Equilibrium Lecture 9. Aggregate Demand I: Building the IS–LM Model