22.3 Aggregate Demand Curve #Notebook
The AD curve is essentially just another way of stating the IS-LM model, anything that would change the IS or LM curves will also shift the AD curve.
The AD curve shifts in the same direction as the IS curve and the AD curve also shifts in the same direction as the LM curve.
Reference
Wright, R.E. & Quadrini, V. (2009). Money and Banking. Saylor Foundation. Licensed under Creative Commons Attribution-NonCommercial-ShareAlike CC BY-NC-SA 3.0 license.
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