DiscussEconomics

Tag: demand

  • Deriving the Aggregate Demand Curve

    Check out this graph: For a given nominal money stock, a price level decrease increases the real money stock. This shifts the LM curve outward, and the interest rate goes down and income increases. Therefore, along the AD curve, a price level decrease )holding the nominal money stock constant) is consistent with an income increase,…

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  • Introduction to Supply and Demand Curves Example

    Here is a question that originally hit our economics forums. The questions are based on some introductory supply and demand curves. The picture and the answers after the jump.

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