AD.m Computes inflation based on aggregate demand relationship. Inputs are output growth, the slope of the aggregate demand curve, the time-varying component of the aggregate demand relation and the constant.
0001 function pi_ad = ad(g,ad_slope,adt,ad_constant); 0002 % AD.m 0003 % 0004 % Computes inflation based on aggregate demand relationship. Inputs are 0005 % output growth, the slope of the aggregate demand curve, the time-varying 0006 % component of the aggregate demand relation and the constant. 0007 0008 pi_ad = ad_slope*g + adt + ad_constant;