上海交通大学宏微观经济学课件第12篇短期经济波动详解.ppt

* This slide asks “how does money demand depend on Y?” and provides the answer. The following slides ask how money demand depends on r and P and does not provide the answers, but asks students to figure out the answers themselves. You may be reluctant to allocate class time to this activity, when you could much more quickly just give them the answers. But students will learn these concepts better if they have to figure them out. Consider having students work in pairs: each student can “test” his or her answer on the other student, and students can pick apart each other’s answers until they are comfortable that they have the correct reasoning. This is a very effective learning experience. I suggest allowing 4 minutes of class time for students to formulate their answers. (To motivate students to actually work on the questions during these 4 minutes, you might tell them these questions appeared on exams you have given in this course in the past.) During these four minutes, circulate around the room, not only to make yourself available in case any students need help getting started, but also to get a sense of how well students are “getting it.” * As in previous chapters, MS = Money Supply MD = Money Demand * This graph replicates Figure 2 in the textbook but with one difference. Figure 2 shows the effects of an increase in P on interest rates and on the quantity of real GDP demanded. For the sake of variety, this slide shows the effects of a decrease in P. In the preceding exercise, students figured out that an increase in P causes an increase in money demand. Of course, the converse is true: a decrease in P causes a decrease in money demand, which shifts the money demand curve left as shown in the graph on the left. As the book explains, the fall in the interest rate reduces the cost of borrowing, so it stimulates investment – firms borrow more money (or sell more bonds, or issue more stock) to finance investment projects, and households b