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Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 the IS–LM model of aggregate demand.

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Presentation on theme: "Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 the IS–LM model of aggregate demand."— Presentation transcript:

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2 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 the IS–LM model of aggregate demand

3 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.1a Investment and Interest Rates

4 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.1b Investment and Interest Rates

5 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.1c Investment and Interest Rates

6 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.2 Rates of Return and the Demand for Capital

7 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.3 The Investment Function

8 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.4 The Canadian Investment Demand Curve: 1970 to 1998

9 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.5 Deriving the IS Curve

10 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.6 The Response of Real GDP to the Interest Rate

11 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.7 A Change in Government Expenditures Shifts the IS Curve

12 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.8 Money Supply Growth and Interest Rates

13 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.9 The Demand for Money Function

14 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.10 Canadian Demand for Money: 1970 to 1998

15 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.11 Deriving the LM Curve

16 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.12 A Change in the Money Supply Shifts the LM Curve

17 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.13 IS–LM Equilibrium

18 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.14 Equilibrating Forces

19 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.15 Converging to IS–LM Equilibrium

20 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 6.16 Deriving the Aggregate Demand Curve

21 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Table 6.1 The Developer’s Decision Problem


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