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6.1 AD Function: Fiscal policies and ad curves OIncrease government purchase at the equilibrium point(r, YG OIS Curve shifts to IS2 and under the same price level output Increases to Y2 ⊙ AD curve shifts to ad2 ADI R P AD2 PI R R 2 2. Y2 Y 复经济学院R Y Y R1 Y1 IS1 P LM1 Y1 AD1 P1 Increase government purchase at the equilibrium point (R1 , Y1 )G IS2 1. IS Curve shifts to IS2 . and under the same price level output increases to Y2 Y2 R2 Y2 2. 2. AD curve shifts to AD2 AD2 3. 6.1 AD Function:Fiscal policies and AD curves
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