Context Chapter 9 introduced the model of aggregate demand and supply Chapter 10 developed the Is-LM model, the basis of the aggregate demand curve In Chapter 11, we will use the Is-LM model to see how policies and shocks affect income and the interest rate in the short run when prices are fixed derive the aggregate demand curve explore various explanations for the Great Depression CHAPTER 11 Aggregate Demand Il slide oCHAPTER 11 Aggregate Demand II slide 0 Context ▪ Chapter 9 introduced the model of aggregate demand and supply. ▪ Chapter 10 developed the IS-LM model, the basis of the aggregate demand curve. ▪ In Chapter 11, we will use the IS-LM model to – see how policies and shocks affect income and the interest rate in the short run when prices are fixed – derive the aggregate demand curve – explore various explanations for the Great Depression