PPT-Aggregate Supply in the Short and Long Run

Shortrun Aggregate Supply SRAS SRAS shows the relationship between the economys aggregate price level and the total quantity of final goods and services aggregate output or RGDP producers are willing to supply. 19. Shane Murphy. s.murphy5@lancaster.ac.uk. Office Hours: Monday 3:00-4:00 – LUMS C85. Outline. Roll Call. Problems. Chapter . 32: . Problem . 2a. Suppose the economy is in a long-run equilibrium.. Mankiw. M. acroeconomics. Principles . of. Sixth Edition. 20. In this chapter, . look for the answers to these questions:. What are economic fluctuations? What are their characteristics?. How does the model of aggregate demand and aggregate supply explain economic fluctuations?. 9. Perfect Competition In A Single Market. . Objectives. What are . perfectly competitive . markets. How . prices are determined in . a . perfectly competitive . market. Why entry . and exit of . firms occur and its effects. 12. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Aggregate Demand. Real GDP desired at each price level. Inverse relationship. Real balances effect. Chapter . 15 . of . Macroeconomics. , . 8. th. . edition, by N. Gregory . Mankiw. ECO62. . Udayan. . Roy. PART V Topics in Macroeconomic Theory. Inflation and dynamics in the short run. So far, to analyze the short run we have used. Sample Questions. AP Economics. Mr. Bordelon. My cat Emma loves you all, and is watching you work hard.. Suppose GDP is $8,000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8.. Anticipated and. Unanticipated Changes. Understanding Macroeconomics. -- Our Game Plan. Anticipated changes . are fully expected . by . economic participants. . Decision makers have time to adjust to . Today:. Aggregate demand. Why is it downward sloping?. Factors that affect the aggregate demand. Aggregate supply. Long-run aggregate supply. Short-run aggregate supply. Why is it upward sloping?. Factors that affect the short-run aggregate supply. Aggregate Supply. Learning Objectives. Define the aggregate demand curve. Explain why it slopes downward. Explain why it shifts. Define the aggregate supply curve. Explain why it slopes downward. Explain why it shifts. Day 1. Q1: During the Great Depression we saw a rise in unemployment and deflation. In the recession of 1979-1982 a rise in unemployment but inflation. Why?. Q2: What is stagflation?. Aggregate Supply and Aggregate Demand. Orange Group. This is chapter . 35. !!. The natural rate of unemployment depends on various features of the labor market.. Examples include minimum-wage laws, the market power of unions, the role of efficiency wages, and the effectiveness of job search.. Chapter 13. © Dünhaupt, Dullien, Goodwin, Harris, Nelson, Roach, . Torras. Learning goals. After . today‘s. . lecture. , . you. . will . be. . able. . to. :. Explain . the derivation of the Aggregate Demand curve relating inflation and output levels, and how it shifts.. Chapter 9 Perfect Competition In A Single Market Objectives What are perfectly competitive markets How prices are determined in a perfectly competitive market Why entry and exit of firms occur and its effects The Influence of Monetary and Fiscal Policy on Aggregate Demand. Monetary policy refers to the control of a country’s quantity of money by its central bank. We saw the . long-run effects. of monetary policy in Chapter 12 (Money Growth and Inflation).