To make changes in the aggregate price level and to make dependent the output on aggregate supply and demand, this case extends the IS/LM model. This note presents the idea of the full employment level of output, gives microfoundation that support the aggregate supply curve, and evaluates the consequences of fiscal and monetary policy at the point when the economy is below and above the fully employment level of output. At the end, the IS/LM AD/AS model’s exogenous components are concluded by evaluating.
Related Case Solutions & Analyses:
Managing Creativity at Shanghai Tang
Levi Strauss & Co. (D)
The Cellphone Industry from the Origins to Deregulation Industry Note
Acquisition and Consolidation: The Evolution of Tsingtao Brewery
Transforming Korea Inc.: Financial Crisis and Institutional Reform
What Makes a Virtual Organization Work
Note on the Private Equity Industry
Braddock Industries Inc.
PQI: Management of Suppliers
Change at Pfizer: Jeff Kindler (B) The Wyeth Acquisition
