2 The downward-sloping AD curve An increase in the price level causes a fall in real money balances (MP) (实际货币余额)， causing a decrease in the demand for goods services. AD CHAPTER 9 Introduction to Economic Fluctuations slide 10
slide 10 An increase in the price level causes a fall in real money balances (M/P ) (实际货币余额), causing a decrease in the demand for goods & services. Y P AD 2
2 Shifting the AD curve An increase in the money supply shifts the AD curve to the right. AD2 AD Return CHAPTER 9 Introduction to Economic Fluctuations slide 11
slide 11 An increase in the money supply shifts the AD curve to the right. Y P AD1 AD2 2 Return