Teaching Aggregate Demand and Supply Models
The Journal of Economic Education, 2010, vol. 41, issue 1, 31-40
The author analyzes the inflation-targeting model that underlies recent textbook expositions of the aggregate demand--aggregate supply approach used in introductory courses in macroeconomics. He shows how numerical simulations of a model with inflation inertia can be used as a tool to help students understand adjustments in response to demand and supply shocks of various kinds.
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Working Paper: Teaching Aggregate Demand and Supply Models (2007)
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