Context This chapter develops the IS-LM model, the theory that yields the aggregate demand curve. We focus on the short run and assume the price level is fixed CHAPTER 10 Aggregate Demand I slide 2CHAPTER 10 Aggregate Demand I slide 2 Context ▪ This chapter develops the IS-LM model, the theory that yields the aggregate demand curve. ▪ We focus on the short run and assume the price level is fixed