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.. 29. 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. 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?. Principles of Macroeconomics. Sixth Canadian Edition. by Mankiw/Kneebone/McKenzie. Adapted for the . Sixth Canadian Edition by. Marc Prud’homme. University of Ottawa. Aggregate demand and aggregate supply. 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. 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. Derive AS/AD model . Understand cause & consequences of change in AS/AD. Short run vs Long run. Effects on economic growth, prices, unemployment.. Different schools of thought in macroeconomics. Macroeconomic Long Run and Short Run. Derive AS/AD model . Understand cause & consequences of change in AS/AD. Short run vs Long run. Effects on economic growth, prices, unemployment.. Different schools of thought in macroeconomics. Macroeconomic Long Run and Short Run. 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.. AD - The Model. PL. RGDP. AD. PL = Price Level. ALL prices in the economy. Real Gross Domestic Product = Dollar value of ALL domestically produced final goods and services adjusted for inflation. AD = Aggregate demand. The total amount of goods and services people will purchase at ALL price levels. Has the same components as GDP.. Economics. 2 Emmanuel . Saez. Fall 2024. I. Overview of Short-Run Fluctuations. Actual and Potential Real GDP in the U.S. .