All I could explain is through the mathematical process demonstration of AD Curve's relationship with IS-LM model:
Macro Basic brings us the following equations: GDP=C+I+G+X
C=a+mpc(Y-T)
T=-F+To+t*Y usually students in China might see =t*Y but here F =transfer payments, To=property tax
C=a+mpc*(F-To)+mpc*(1-t)*Y
I=e-d*R
G=Gov. spending
X=g-m*Y
X=g-m*Y-n*R IS Curve:(1-mpc*(1-t)+m)*Y=a+mpc*(F-To)+e+G+g-(d+n)*R Please put R along on the left side of the equation, rearrange it. LM Curve: we know that M=(k*Y-h*R)*P
derives M/P=k*Y-h*R
put R on the left side and rearrange it as (R belongs to LM curve): R=k/h*Y-1/h*M/P
We also have to use Matrix to put IS-LM together and we directly show the result below:
The IS-LM model projects the economy onto the (Y,R) co-ordinate plane. When we recast the IS-LM model onto (Y,P) plane, the result is AD Curve. Eliminate R to focus on Y and P. IS Curve LM Curve
a+e+g+mpc*(F-To) G 1-mpc(1-t)+m
_______________ + ____ - ( ____________*Y) = k/h*Y-1/h*M/P
d+n d+n d+n
Rearrange
a+g+e+mpc*(F-To)+G G 1-mpc(1-t)m
-1/h*M/P=___________________ + ____ - ( ___________+ k/h)*Y
d+n d+n d+n
Solve for the price level, P, to obatain the AD equation.
M
P=-1/h* ___________________________________________
a+e+g+mpc*(F-To)+G 1-mpc(1-t)+m
__________________ - ( __________ +k/h)*Y
d+n d+n
delta P/deltaY AD slope<0
Friends at 人大经济论坛, remember we mentioned that IS-LM curves are on (Y,R) co-ordinate? Now we've solved for P, therefore P is on the Y-axis, Y on X-axis. We successfully collapesed IS-LM into AD Curve. AD curve slopes downward from left UP to right DOWN. And here we go!
谢谢!很抱歉,我在国外读经济的很少接触国内翻译的教科书所以一贯不太敢用中文写很多经济的东西,所以直接全写英文了!麻烦见谅!ISLM 和AD都是通过严密的数学推理出来的公式。但是AD毕竟只是经济学家们想象出来的,和事实还是不同的。总需求量不等于实际世界里面的成交量的。