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Content Articles in Economics

Shifts in the Aggregate Demand Curve: Treatment and Mistreatment in Intermediate Textbooks

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Pages 35-39 | Published online: 14 Jul 2014
 

Abstract

The consequences of exogenous shifts in the aggregate demand curve are incorrect or misleading in most intermediate macroeconomic textbooks because the slope of the curves are drawn incorrectly. The authors identify the nature of the error and offer a remedy.

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