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May 25, 2006
Aggregate Demand and Supply - The Keynesian Perspective
Keynesians focus on aggregate demand.
We derived the aggregate demand curve by holding M fixed and changing P.
Fiscal policy can shift the aggregage demand curve.
Monetary policy can also shift the aggregate demand curve. (This is from the next day's lecture.)
The Keynesians and classical economists differ in how they see the slope of the aggregate supply curve.
Posted by bparke at May 25, 2006 09:25 PM