经济学原理宏观讲义6学习笔记.docVIP

PRINCIPLES OF ECONOMICS – MACROECONOMICS Week 6. Macroeconomic Equilibrium and the IS-LM Model The Effects of Changes in Autonomous Expenditure on P and Y We have seen that: A rise in the price level (P) will shift the aggregate expenditure (AE) curve upwards; and An increase in autonomous expenditure (A) independent of price change will shift the aggregate demand (AD) curve to the right. What will be the effects of an increase in A on P Y? The answer lies on the shape of the SAS curve. In case (a), an increase in A results in AE0AE1, and hence AD0AD1. Because the SAS(H) curve is