Macroeconomics: Theory and Policy

acceleration principle adjustment aggregate demand alter amount analysis assume assumption average bank billion bond prices c₁ capital changes Chapter classical constant consumer consumption function costs cycle decline deficit deflation demand for money depends deposits determined disposable income dynamic economic economists effects employers equal equation equilibrium example existence expected expenditures factors Figure financial assets firms fiscal policy full employment growth higher increase individual inflation inflationary interest rate inventories IS-LM model J. M. Keynes Keynes labor less LM curve M₁ macroeconomic monetarists monetary policy money supply money wage multiplier national income national product percent period Phillips curve potential output price level profits purchases rate of interest real wage reduce relationship relative rise saving Say's Law schedule securities shift spending stability t₁ transactions demand United variables W₁ wage rates wages and prices wealth wealthholders workers Y₁ yields zero