1907 Ch14 Outputs and Money Market: IS-LM Model Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch14 Outputs and Money Market： IS-LM Model
190 17-2 例 Money market Goods market Monetary policy Money supply Output Fiscal policy Money demand AD r The relationship between goods and money market Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 17-2 Monetary policy Money market Money supply Money demand Y r Goods market Output AD Fiscal policy The relationship between goods and money market
490 17-3 ④ 14.1 The IS curve def:a graph of all combinations of r and y that result in goods market equilibrium, i.e.actual expenditure (output)=planned expenditure The equation for the Is curve is: Y=C(Y-T)+I(r)+G I(r)=Io-er Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 17-3 14.1 The IS curve def: a graph of all combinations of r and Y that result in goods market equilibrium, i.e. actual expenditure (output) = planned expenditure The equation for the IS curve is: Y CY T I r G ( ) () I(r ) =I 0 -er
17-4 0 ④ Deriving the IS curve Y=C+I+G =Co+b(Y-To-tY)+Io-er+G =(Co-bTo+To+G)+b(1-t)Y-er 1 Y-1(1(Co-bTo+G+Io-er) Y=a(A-er) AY r= e ea Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 17-4 Deriving the IS curve (C bT I G) b(1 t )Y er C b(Y T tY) I er G Y C I G 0 0 0 0 0 0 - - - - - - = + + + = + + + = + + ea Y e A r Y a(A er) (C bT G I er) 1 b(1 t ) 1 Y 0 0 0 - - - - - - = = = + +
1907 17-5 Deriving the IS curve w AE=YAE-C+I(r2)+G ↓r台个I AE=C+I)+G →个AE △I Yi Y2 2 IS Y Y2 Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 17-5 Y1 Y2 Y1 Y2 Deriving the IS curve r I Y A E r Y AE =C +I (r1)+G AE =C +I (r2)+G r1 r2 AE =Y IS AE I Y