May 28, 2003

Completing the Classical Model

We added aggregate supply and aggregate demand and then studied the effects of an increase in the money supply.

P5280006a.jpg

Adding a diagram of the supply and demand for loanable funds completes the model:

P5280002a.jpg

The effects of fiscal policy are largely confined to the loanable funds diagram:

P5280004a.jpg


Posted by bparke at May 28, 2003 02:16 PM