1 / 7

BU204 - Unit 6 Seminar

BU204 - Unit 6 Seminar. Chapter 11: Income and Expenditure Chapter 12: Aggregate Demand and Aggregate Supply. Key Term Assignment. “Sticky” nominal wages Long Run Aggregate Supply Curve Marginal Propensity to Consume Multiplier Supply Shocks, both positive and negative

nora-tyler
Télécharger la présentation

BU204 - Unit 6 Seminar

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BU204 - Unit 6 Seminar Chapter 11: Income and Expenditure Chapter 12: Aggregate Demand and Aggregate Supply

  2. Key Term Assignment • “Sticky” nominal wages • Long Run Aggregate Supply Curve • Marginal Propensity to Consume • Multiplier • Supply Shocks, both positive and negative • Demand Shocks, both positive and negative

  3. Chapter 10 • Multiplier • Consumption Function • Determinants of Investment Spending • Role of Investment • Income-Expenditure Equilibrium

  4. Chapter 11 - Aggregate Demand & Aggregate Supply: • Aggregate Demand (AD) • Downward-sloping curve: • Wealth Effect and Interest Rate Effect • AD can shift if: • Changes in expectations, change in wealth, or change in the amount of physical capital. • OR, by Fiscal Policy or Monetary Policy.

  5. Aggregate Supply (SRAS and LRAS): • Short-run aggregate supply • Reason for upward slope • SRAS will shift if: • Change in commodity prices, change in nominal wages, change in productivity. • Long-run aggregate supply • LRAS is vertical at potential output. • From the SR to the LR

  6. AD-AS Model: • SR Equilibrium • Shifts in AD or AS • LR Equilibrium • Recessionary Gap • Inflationary Gap • Macroeconomic Policy: • Stabilization Policy

  7. 13. Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output? • There is a decrease in households’ wealth due to a decline in the stock market. b. The government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases

More Related