The aggregate demand relation: Money Growth Inflation and Output Growth e In chapter 9, we have the following relation Y=Y(MP,G、T (92) e n order to focus on the relation between the real money stock and output, we shall ignore changes in factors other than real money here, and write the aggregate demand relation simply as Y+=r(M /Pt) (11.6) e You should keep in mind, however, that behind this elation hides the set of steps we saw in the IS-LM model To continue 2003-7-28 82003-7-28 8 The aggregate demand relation: Money Growth, Inflation, and Output Growth In chapter 9,we have the following relation: Y=Y(M/P, G, T) (9.2) ( + , + , - ) In order to focus on the relation between the real money stock and output, we shall ignore changes in factors other than real money here, and write the aggregate demand relation simply as: Yt =γ(Mt /Pt ) (11.6) You should keep in mind, however, that behind this relation hides the set of steps we saw in the IS-LM model: To continue