1. Lectures in Macroeconomics- Charles W. Upton Equilibrium in Two Markets Exercises

2. Equilibrium in Two Markets- Exercises The Y and M Curves P r Y M PoPo roro

3. Equilibrium in Two Markets- Exercises A Problem

4. Equilibrium in Two Markets- Exercises A Problem

5. Equilibrium in Two Markets- Exercises A Problem

6. Equilibrium in Two Markets- Exercises A Problem

7. Equilibrium in Two Markets- Exercises Another Problem M S = 100

8. Equilibrium in Two Markets- Exercises Another Problem M S = 100 25 33 50 100

9. Equilibrium in Two Markets- Exercises Another Problem M S = 100 25 33 50 100

10. Equilibrium in Two Markets- Exercises A $2 Increase in C

11. Equilibrium in Two Markets- Exercises A $2 increase in C

12. Equilibrium in Two Markets- Exercises Another Problem M S = 100 Santa adds $60 to people's stockings. Every real dollar increase in wealth adds $0.60 to real money demand.

13. Equilibrium in Two Markets- Exercises Another Problem M S = 100160

14. Equilibrium in Two Markets- Exercises Another Problem M S = 100160 If P = 4, Δz=60/4=15 ΔM D =9

15. Equilibrium in Two Markets- Exercises Another Problem M S = 100160 If P = 3, Δz=60/3=20 ΔM D =12

16. Equilibrium in Two Markets- Exercises Another Problem M S = 100160 If P = 2, Δz=60/2=30 ΔM D =18

17. Equilibrium in Two Markets- Exercises Another Problem M S = 100160 If P = 1, Δz=60/1=60 ΔM D =36

18. Equilibrium in Two Markets- Exercises Another Problem M S = 100160 25 33 50 100 40 53 80 160

19. Equilibrium in Two Markets- Exercises Another Problem M S = 100 160 25 33 50 100 40 53 80 160

20. Equilibrium in Two Markets- Exercises Summary Y and M curves represent equilibrium in Goods Market (Y curve) and Money Market (M curve). –The intersection represents equilibrium in both markets Events such as increased confidence and Christmas presents can shift Y and M curves. –We analyze policies via the Curves.

21. Equilibrium in Two Markets- Exercises End ©2003 Charles W. Upton. All rights reserved