CHAPTER 3The Goods MarketCHAPTER 3Prepared by:Fernando Quijano and Yvonn QuijanoThe Goods MarketCopyright 2009 Pearson Education,Inc.Publishing as Prentice Hall Macroeconomics,5/e Olivier BlanchardChapter 3:The Goods MarketCopyright 2009 Pearson Education,Inc.Publishing as Prentice Hall Macroeconomics,5/e Olivier BlanchardMOTIVATING QUESTION1.How is output determined in the short run?Output is determined by equilibrium in the goods market by the condition that supply equals demand.This condition
