ch13Aggregate Demand,Aggregate Supply(宏观经济学Karl Case, Ray Fair)概要1.pptVIP

Aggregate Demand,Aggregate Supply,and Inflation The Aggregate Demand Curve Aggregate demand is the total demand for goods and services in the economy. Deriving the Aggregate Demand Curve To derive the aggregate demand curve, we examine what happens to aggregate output (income) (Y) when the price level (P) changes, assuming no changes in government spending (G), net taxes (T), or the monetary policy variable (Ms). Deriving the Aggregate Demand Curve Deriving the Aggregate Demand Curve The Aggregate Demand Curve:A Warning The AD curve is not a market demand curve. It is a more complex concept. We cannot use the ceteris paribus assumption to draw an AD curve. In reality, many prices (including input prices) rise together. The Aggregate Demand Curve:A Warning A higher price level causes the demand for money to rise, which causes the interest rate to rise. Then, the higher interest rate causes aggregate output to fall. The Aggregate Demand Curve:A Warning At all points along the AD curve, both the goods market and the money market are in equilibrium. Other Reasons for a Downward-Sloping Aggregate Demand Curve The consumption link: The decrease in consumption brought about by an increase in the interest rate contributes to the overall decrease in output. Other Reasons for a Downward-Sloping Aggregate Demand Curve The real wealth effect, or real balance, effect is the change in consumption brought about by a change in real wealth that results from a change in the price level. Aggregate Expenditureand Aggregate Demand At every point along the aggregate demand curve, the aggregate quantity of output demanded is exactly equal to planned aggregate expenditure. Shifts of the Aggregate Demand Curve An increase in the quantity of money supplied at a given price level shifts the aggregate demand curve to the right. Shifts of the Aggregate Demand Curve An increase in government purchases or a decrease in net taxes shifts the aggregate demand curve to the right. Shifts of th