Working with our basic Aggregate Demand Supply 与我们的基本总需求供应工作.pptVIP

6,000 115 5,400 5,700 110 5,700 5,400 105 6,000 5,100 100 6,300 4,800 95 6,600 4,500 90 6,900 SRAS105 Price Level AD105 1. What will be the GDP? 2. Will it be long-run equilibrium? 3. What will be the relationship between the actual and natural rates of unemployment? 6,000 115 4,800 5,700 110 5,100 5,400 105 5,400 5,100 100 5,700 4,800 95 6,000 4,500 90 6,300 SRAS105 Price Level AD105 1. What will be the GDP? 2. Will it be long-run equilibrium? 3. What will be the relationship between the actual and natural rates of unemployment? 4. Will this GDP be sustainable? Each of these factors tends to increase the quantity of goods services purchased at the lower price level. A lower price level will 1. increase the wealth of people holding the fixed quantity of money, 2. lead to lower interest rates, and 3. make domestic goods cheaper relative to foreign goods. Goods Services(real GDP) PriceLevel AD P2 Y1 Y2 P1 A reduction in the price  level will increase the  quantity of goods  services demanded. Goods Services(real GDP) PriceLevel AD0 AD1 AD2 Increases shift the curve right Decreases shift the curve left Stock prices, real estate values affect real wealth Lower rates shift the curve right Higher rates shift the curve left Optimism shifts the curve right Pessimism shifts the curve left Stock prices, world events affect expectations Higher future rates shift the curve right Lower future rates shift the curve left In the present Increased income shifts the curve right Decreased income shifts the curve left The large the trade sector, the larger the effect Appreciation shifts the curve right Depreciation shifts the curve left 1. How will each of the following factors influence aggregate demand in the United States: (a) An increased fear of recession. (b) An increased fear of inflation. (c) The rapid growth of real income in Canada and Western Europe. (d) A reduction in the real interest rate. (e) A higher price level (be careful). (f) A stock ma