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Copyright©2004 South-Western 34 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

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Page 1: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

3434The Influence of

Monetary and Fiscal Policy on Aggregate

Demand

Page 2: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 1 Equilibrium in the Money Market

Page 3: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 2a The Money Market and the Slope of the Aggregate-Demand Curve

Page 4: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 2b The Money Market and the Slope of the Aggregate-Demand Curve

Page 5: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 3a A Monetary Injection

Page 6: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 3b A Monetary Injection

Page 7: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 4 The Multiplier Effect

Page 8: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 5a The Crowding-Out Effect

Page 9: Copyright©2004 South-Western 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand

Copyright©2004 South-Western

Figure 5b The Crowding-Out Effect