PPT-Aggregate Demand and Economic

Fluctuations Chapter 9 Dünhaupt Dullien Goodwin Harris Nelson Roach Torras Learning Goals After todays lecture you will be able to Describe how unemployment and inflation . Aggregate expenditure line. Real GDP demanded. Changes in aggregate expenditure. Simple spending multiplier. Changes in the price level. Aggregate demand curve. Components of aggregate expenditure (AE). 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. Chapter 11. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Chapter 11: Learning Objectives. Demand. Principle of Effective Demand is the pillar of Keynesian Theory of Employment. Dillard considers the principle of effective demand to be the logical starting point of Keynesian Theory of Employment.. Lecture 12 Part 1. The Global Financial Crisis. Empirical Data & . Modelling. Biggest crisis since the Great Depression... For . almost. every country. Australia (you’re standing in it) the exception. 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. The Global Financial Crisis. Empirical Data & . Modelling. Biggest crisis since the Great Depression... For . almost. every country. Australia (you’re standing in it) the exception. Reasons why discussed later. 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. Chapter 11: Learning Objectives. You should be able to:. Explain what aggregate planning is and how it is useful. Identify the variables decision makers have to work with in aggregate planning and some of the possible strategies they can use. 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. 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). 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 . Principle of Effective Demand is the pillar of Keynesian Theory of Employment. Dillard considers the principle of effective demand to be the logical starting point of Keynesian Theory of Employment.. Class : B.Com-I (IInd Semester). Subject : Macro Economics. Topic : Keynesian Theory of Output. College: IB (PG) College, Panipat. (Affiliated to Kurukshetra University, . .