OUTPUT & THE EXCHANGE RATE IN THE SHORT RUN

1. 4. OUTPUT MARKET EQUILIBRIUM IN THE SHORT RUN: THE DD SCHEDULE

2. 5. ASSET MARKET EQUILIBRIUM IN THE SHORT RUN: THE AA SCHEDULE

3. 6. SHORT-RUN EQUILIBRIUM FOR AN OPEN ECONOMY: PUTTING THE DD AND AA SCHEDULES TOGETHER

4. 1. DETERMINANTS OF AGGREGATE DEMAND IN AN OPEN ECONOMY

4.1. Aggregate demand is the amount of country good and services demanded by household, firm and government throughout the world.

4.2. Aggregate demand is the aggregate amount of goods and services that individuals and institutions are willing to buy: consumption expenditure investment expenditure government purchases net expenditure by foreigners: the current account

5. 2. THE EQUATION OF AGGREGATE DEMAND

6. 3. HOW OUTPUT IS DETERMINED IN THE SHORT RUN