Monetary Policy Rules, Supply Shocks, and the Price Level Elasticity of Aggregate Demand: A Graphical Examination


Publication: Journal of Economic Education

Volume: Volume 26, No. 4

Issue: Fall 1995

Pages:

Author(s): Ben L. Kyer (Francis Marion University) and Gary A. Maggs (St. John Fisher College)

Address (Principal Author): Ben L. Kyer, Department of Economics, Francis Marion University, Box 100547, Florence, SC 29501-0547 (803) 661-1419

Internet Address (Principal Author):

Title: Monetary Policy Rules, Supply Shocks, and the Price Level Elasticity of Aggregate Demand: A Graphical Examination

Abstract: The manner in which the price level elasticity of aggregate demand affects alternative monetary policy rules designed to cope with random aggregate supply shocks is demonstrated in the two dimension price and output graphs found in macroeconomics textbooks.


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