Table of Contents
- About the Author
- Money, Banking, and Your World
- The Financial System
- Interest Rates
- The Economics of Interest-Rate Fluctuations
- The Economics of Interest-Rate Spreads and Yield Curves
- Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities
- Financial Structure, Transaction Costs, and Asymmetric Information
- Bank Management
- Innovation and Structure in Banking and Finance
- The Economics of Financial Regulation
- Financial Derivatives
- Financial Crises: Causes and Consequences
- Central Bank Form and Function
- The Money Supply Process and the Money Multipliers
- Monetary Policy Tools
- Monetary Policy Targets and Goals
- Foreign Exchange
- International Monetary Regimes
- Money Demand
- IS-LM in Action
- Aggregate Supply and Demand and the Growth Diamond
- Monetary Policy Transmission Mechanisms
- Inflation and Money
- Rational Expectations Redux: Monetary Policy Implications
Money and Banking, v. 2.0
by Robert E. Wright
Chapter 23 Aggregate Supply and Demand and the Growth Diamond
By the end of this chapter, students should be able to:
- Describe the aggregate demand (AD) curve and explain why it slopes downward.
- Describe what shifts the AD curve and explain why.
- Describe the short-run aggregate supply (AS) curve and explain why it slopes upward.
- Describe what shifts the short-run AS curve and explain why.
- Describe the long-run aggregate supply (ASL) curve, and explain why it is vertical and what shifts it.
- Explain the term long term and its importance for policymakers.
- Describe the growth diamond model of economic growth and its importance.