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Teaching Aggregate Demand and Supply Models


  • Graeme Wells


The author analyzes the inflation-targeting model that underlies recent textbook expositions of the aggregate demand--aggregate supply approach used in introductory courses in macroeconomics. He shows how numerical simulations of a model with inflation inertia can be used as a tool to help students understand adjustments in response to demand and supply shocks of various kinds.

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  • Graeme Wells, 2010. "Teaching Aggregate Demand and Supply Models," The Journal of Economic Education, Taylor & Francis Journals, vol. 41(1), pages 31-40, January.
  • Handle: RePEc:taf:jeduce:v:41:y:2010:i:1:p:31-40 DOI: 10.1080/00220480903382313

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    References listed on IDEAS

    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Manfred K÷nigstein, 2001. "Optimal Contracting With Boundedly Rational Agents," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 211-228.
    3. Vital Anderhub & Simon Gächter & Manfred Königstein, 2002. "Efficient Contracting and Fair Play in a Simple Principal-Agent Experiment," Experimental Economics, Springer;Economic Science Association, vol. 5(1), pages 5-27, June.
    4. Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
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