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Chapter 6 Markets, Prices, Supply, and Demand

Chapter 6 Markets, Prices, Supply, and Demand. Objective: understand short-run economic fluctuations. Micro foundations: the choices made by consumers and firms. Supply and demand behavior. The neoclassical way: the market clears. Timing. States: B t -1 , K t -1 , P t -1 , M t -1

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Market clears - PowerPoint PPT Presentation

Chapter 6 Markets, Prices, Supply, and Demand