Determinants of Aggregate Demand in an Open Economy The Equation of Aggregate Demand How Output Is Determined in the Short run Output Market Equilibrium in the Sort run: The DD Schedul Asset Market Equilibrium in the Short Run: The AA Schedule
Chapter Organization =Introduction The Law of One Price Purchasing Power Parity A Long-Run Exchange Rate Model Based on PPP Empirical Evidence on PPP and the Law of One Price Explaining the Problems with PPP
