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Understanding Short-Run Exchange Rate Dynamics

Explore the impact of output, exchange rates, and government policies in the short run. Learn about macroeconomic equilibrium and effects of monetary and fiscal changes on economic stability.

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Understanding Short-Run Exchange Rate Dynamics

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  1. CHAPTER 16OUTPUT AND THE EXCHNAGE RATE IN THE SHORT RUN

  2. Figure 16-1 Aggregate Demand as a Function of Output

  3. Figure 16-2 The Determination of Output in the Short Run

  4. Figure 16-3 Output Effect of a Currency Depreciation with Fixed Output Prices

  5. Figure 16-4 Deriving the DD Schedule continued...

  6. Figure 16-4 continued...

  7. Figure 16-5 Government Demand and the Position of the DD Schedule continued...

  8. Figure 16-5 continued...

  9. Figure 16-6 Output and the Exchange Rate in Asset Market Equilibrium

  10. Figure 16-7 The AA Schedule

  11. Figure 16-8 Short-Run Equilibrium: The Intersection of DD and AA

  12. Figure 16-9 How the Economy Reaches Its Short-Run Equilibrium

  13. Figure 16-10 Effects of a Temporary Increase in the Money Supply

  14. Figure 16-11 Effects of a Temporary Fiscal Expansion

  15. Figure 16-12 Policies to Maintain Full Employment After a Money-Demand Increase

  16. Figure 16-14 Short-Run Effects of a Permanent Increase in the Money Supply

  17. Figure 16-15 Long-Run Adjustment to a Permanent Increase in the Money Supply

  18. Figure 16-16 Effects of a Permanent Fiscal Expansion

  19. Figure 16-17 How Macroeconomics Policies Affect the Current Account

  20. Figure 16-18 The J-Curve

  21. Figure 16AI-1 Short-Run Equilibrium in the IS-LM Model

  22. Figure 16AI-2 Effects of Permanent and Temporary Increases in the Money Supply in the IS-LM Model

  23. Figure 16AI-3 Effects of Permanent and Temporary Fiscal Expansions in the IS-LM Model

  24. Figure 16AII-1 Change in Output and Saving

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