AS AD Aggregate Supply and Aggregate Demand 1

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Uploaded by on Oct 24, 2010

AS AD A brief overview of Aggregate Supply and Aggregate Demand slope of Aggregate Demand line

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  • helpful! 

  • This helped a lot! Thanks!!

  • @kevinchavez42 That's what I thought!

  • So good, thank you!!

  • You made this subject interesting to me. Thanks!

  • thank you help alot cuz I have a final exam tomorrow~!

  • thank you very much

  • Thanks - this is very helpful!!

  • Given the current situation you might want to mention the Fisher effect as a third factor influencing the slope of the AD curve. In a liquidity trap the slope of the AD curve is determined by net effect of the real balance Pigou effect (downward sloping) and the Fisher effect (upward sloping).  See both Tobin and Krugman for the slope of the AD curve in a liquidity trap.

  • Thank you! Cheers!

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