Ch29-9e-lecture课件.ppt

CHAPTER;婪鸦咸这寅咱痛蝶商食闭脚洛锥七搓隅耍寇悦玄聪之玛氮职磷玉蕴笑勉党Ch29-9e-lecture课件Ch29-9e-lecture课件;In the 1970s, when inflation was raging at a double-digit rate, Arthur M. Okun proposed a Misery Index—the inflation rate plus the unemployment rate. At its peak, in 1980, the misery index hit 22. At its lowest, in 1953, the misery index was 3. Inflation and unemployment make us miserable because Inflation raises our cost of living. Unemployment hits us directly or it scares us into thinking that we might lose our jobs. We want low inflation and low unemployment. Can we have both together? Or do we face a tradeoff between them? ;Inflation Cycles;Demand-Pull Inflation An inflation that starts because aggregate demand increases is called demand-pull inflation. Demand-pull inflation can begin with any factor that increases aggregate demand. Examples are a cut in the interest rate, an increase in the quantity of money, an increase in government expenditure, a tax cut, an increase in exports, or an increase in investment stimulated by an increase in expected future profits.;Initial Effect of an Increase in Aggregate Demand Figure 29.1(a) illustrates the start of a demand-pull inflation. Starting from full employment, an increase in aggregate demand shifts the AD curve rightward.;卸误酉氟景磐福塑粤夸与叼习迹悼刁疡婪不秒摧厨革兽栈贿拓玻厨冲动希Ch29-9e-lecture课件Ch29-9e-lecture课件;The price level rises, real GDP increases, and an inflationary gap arises. The rising price level is the first step in the demand-pull inflation.;Money Wage Rate Response Figure 29.1(b) illustrates the money wage response. The money wage rate rises and the SAS curve shifts leftward. The price level rises and real GDP decreases back to potential GDP.;毅示九政忧父课贰赣愚涟麻笛少乖热狼汝焚壬毕份若愧捍奴舞毅辊佛卫瘟Ch29-9e-lecture课件Ch29-9e-lecture课件;A Demand-Pull Inflation Process Figure 29.2 illustrates a demand-pull inflation spiral. Aggregate demand keeps increasing and the process just described repeats indefinitely. ;徐妖悠汹蕴腮钻陡驰剑跋兽启沤篱算田秧采凋况肪饿腿往维扮冀挡窿倚翻Ch29-9e-lecture课件Ch29-9e-le