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I. Aggregate Supply

I. Financial Institutions and Financial Markets | II. The Market for Loanable Funds | III. Government in the Market for Loanable Funds | IV. The Global Loanable Funds Market | VII. Depository Institutions | VIII. The Federal Reserve System | MATHEMATICAL NOTE | I. The Foreign Exchange Market | II. Exchange Rate Fluctuations | III. Exchange Rate Policy |


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  1. II. Aggregate Demand
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The quantity of real GDP supplied is the total quantity of goods and services, valued in constant dollar prices, that firms plan to produce in a given time period. This amount depends on the quantity of labor employed, the capital stock, and the state of technology. In the short run, only the quantity of labor can vary, so fluctuations in employment lead to changes in real GDP.

Long-Run Aggregate Supply

Short-Run Aggregate Supply

Movements Along the LAS and SAS Curves and Changes in Aggregate Supply

Movements Along the Curves

Shifts in the Curves


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IV. Financing International Trade| II. Aggregate Demand

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