武汉大学金融系各科教材初级宏观PART SEVEN Unemployment, Inflation, and Economic Policy教学文稿.pptVIP

PART SEVENUnemployment, Inflation, and Economic Policy;Part 5----Basis of Macroeconomics Chapter 20 Overview of Macroeconomics Chapter 21 Measuring Economic Activity Chapter 22 Consumption and Investment Chapter 23 Business Fluctuations and the Theory of Aggregate Demand Chapter 24 The Multiplier Model Chapter 25 Money, Banking, and Financial Markets Chapter 26 Central Banking and Monetary Policy;Part 5----Basics of Macroeconomics Part 6----Economic Growth and Economic Policy Chapter 27 The Process of Economic Growth Chapter 28 The Challenge of Economic Development Chapter 29 Exchange Rates and the International Financial System Chapter 30 Open-Economy Macroeconomics Part 7 Unemployment, Inflation, and Economic Policy Chapter 31 Unemployment Chapter 32 Inflation Chapter 33 Schools of Macroeconomics;Chapter 31 Unemployment and the Foundations of Aggregate SupplyPrice Considered;1. Aggregate Supply (AS) (31A) The Behavior of the production side of the economy. 1.1 What is AS (661) AS----Total output at given general price level AS Curve (or Schedule)----relationship bt. AS or GDP and general price level. Basis of output decision: ratio of price level to costs.;1.4 Why is short-run AS is different from long-run AS (664L-666R) In the case of short-run AS, there exist wage rigidity and rigidity of other costs. AD decreases Price level declines Wages and other costs remain unchanged Real wage increases Produce less product. By real wage we mean the purchasing power of money wage. Why are wages and prices of inputs sticky? Contracts and union.;In the case of long-run AS, wages and prices of inputs are flexible, responding to demand changes. AD increases Price level rises Wages and other prices of inputs increase