(5) 3 equation model: Positive temporary AD shock

Please stop at 14:07, unless you feel like watching me wiping the board

[@DricusDuPlessis185]

Does the IS revert back to original position?

[@alexcandal_]

very well explained, thank you!

[@DricusDuPlessis185]

Why is inflation 2 < inflation 1?

[@kottevandebroek]

Can somebody please explain why at 7:30 the inflation at period 0 smaller than in period 1? Cause on the lower diagram, the inflation in period 0 is higher than in period 1

[@lazarskiopencourses4059]

Sure. I made a mistake

[@yushrarashid9176]

thank you!

[@jpcardenas90]

thanks!!!