PPT-The Aggregate Economy Price Level

AD AS RGDP LRAS FE Q1 PL1 The Aggregate Economy Economic well being is determined by the level of Real GDP The level of RGDP is determined by current levels of aggregate demand AD and . 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.. Aggregate Output, Prices, and Economic Growth. Presenter’s name. Presenter’s title. dd. Month . yyyy. 1. Introduction. The focus of this chapter is on macroeconomics, which is the theory and analysis of a nation’s . Week . 20. Shane Murphy. s.murphy5@lancaster.ac.uk. Office Hours: Monday 3:00-4:00 – LUMS C85. Outline. Roll Call. Problems. Chapter . 33: . Problem . 3. The economy is in a recession with high unemployment and low output.. Taggert J. Brooks. Module 02. Introduction to Macroeconomics. The Business Cycle. The . business cycle. is the short-run alternation between economic downturns and economic upturns. . US Business cycle dates from the NBER. Stabilization Policies and Their Effects. E. 2. Expansionary Fiscal Policy: Addressing Recessionary Gaps. Suppose a . negative demand shock . has caused a recession. . AD. 2. AD. 1. Aggregate . Price Level. Unit 3. National Income and Price Determination. 1. The aggregate demand curve is downward sloping because of:. The real-balances effect. The interest rate effect. The substitute effect. The crowding out effect. 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.. 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. Chapter 13. Section 1. National Income Accounting. National Income Accounting. National Income Accounting. : the measurement of the national economy’s performance. Five major statistics measure the national economy: . UNEMPLOYMENT 909 the relatively lucky firms do not increase employment more than they would if their workers had perfect information while the unlucky firms decrease employment more than they would if Introduction & Determinants. Aggregate Demand Curve . (Inverse) Relationship between price level & quantity of aggregate output demanded for the economy as a whole. Aggregate Price Level (measured with GDP deflator). MEANING OF INFLATION.  .  Inflation is commonly understood as a situation of substantial, and general increase in the level of prices of goods and services in an economy and a consequent fall in the value of money over a period of time. . Principles of Macro Economics 1. ECONA 201. Introduction to Macroeconomics. Macroeconomics. deals with the economy as a whole; it examines the behavior of economic aggregates such as aggregate income, consumption, investment, and the overall level of prices.. 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..