May 24, 2004
Review for MT 1
Derive the aggregate demand curve:
Show the effects of an increase in the money supply:
Derive the labor supply curve:
Is it a good idea to concentrate on the upward sloping portion?
An example that illustrates how economics instructors use the most understandable choices for diagram arrangements. We could do an income increase by putting income on the vertical axis of the diagram and letting price changes shift the curves. Is this a good idea?
Lump sum taxes and transfers are pure income effect. Which way does the labor supply curve go?
One possibility:
The effect of an increase in government spending:
What happens to the other diagrams?
Posted by bparke at May 24, 2004 10:02 PM