Page 41 - FINAL CFA I SLIDES JUNE 2019 DAY 5
P. 41

Session Unit 4:
                                                                                                         16. Aggregate Output,
   LOS 16.f: Explain the Income-Savings (IS) and Liquidity-Money (LM) curves                             Prices & Economic Growth, p.52
   and how they combine to generate the aggregate demand curve. .p.58/59






                                                                                                        Increase in real interest rates is
                MPC + MPS = 100%
                                                                                                        accompanied by an increase in
                                                                                                        income





















    Figure 4: Simultaneous

    Equilibrium in the Goods
    Market and the Money Market,

    p. 59
                                                                                                               Equilibrium level of prices
                                                                                                               and real GDP for a given

                                                                                                               level of real Money supply
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