Economics with Prof. Sanjay Paul Lecture 22
THE COMPLETE MODEL


1. The two elements of the model

1.1 Equilibrium in the goods market

1.2 Equilibrium in the money market


2. Link between the two markets

2.1 From money market to goods market

2.2 From goods market to money market


3. Exercises

3.1 Expansionary monetary policy

3.2 Contractionary fiscal policy


4. Use the model to analyze:

Effects of each on: