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 . 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. Steve Keen. Kingston University London. IDEAeconomics. Minsky Open Source System Dynamics. www.debtdeflation.com/blogs. What does Economics have in common with Ptolemy?. (1) The propensity to start from “. 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. 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. Aggregate Demand. Aggregate Demand slopes downward like other demand curves, but for different reasons.. Aggregate Demand. An increase in the aggregate price level will cause real spending to decrease. This is seen as a movement upward along a given AD curve. 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. odel. KRUGMAN'S. MACROECONOMICS for . AP*. 20. Margaret Ray and David Anderson . What you will learn. in this. . Module. :. How the AD-AS model is used to formulate macroeconomic policy. The rationale for stabilization policy. 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. 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. 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). 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..