Chapter 15. Dynamic Model of Aggregate Demand and Supply

Link to syllabus

Figure 14-1, p. 416. Federal Funds Rate: Actual and Suggested

Figure 14-2. p. 419. The Dynamic Aggregate Supply Curve

Table 14-1 p. 417. Variables in the Model

Fig 14-3 p. 421. Dynamic AD Curve

Fig. 14-4 p. 422. Short Run Equilibrium

Fig 14-5 p. 423. An Increase in the Natural Level of Output

Fig 14-6 p. 424. A Supply Shock

Fig 14-7 p. 426. Dynamic Response to a Supply Shock

Fig 14-8 p. 428. A Demand Shock.

Fig. 14-9 p. 429. Response to a Demand Shock

Fig. 14-10 p. 430. A Reduction in Target Inflation

Fig. 14-11. Dynamic

Response to a Reduction in

Inflation

Fig 14-12 p. 433. Two Possible

Responses to a Supply Shock

With a flat or a steepAD curve

Fig. 14-13, p. 437 The Importance of the Taylor Principle