宏观经济学---曼昆chap09.pptVIP

* * * * The textbook explains different ways of thinking about the AD curve’s slope. Here’s one that uses the idea of the simple money demand function introduced in chapter 4 (M/P = kY, where k = 1/V): An increase in the price level causes a fall in real money balances, and therefore a fall in the demand for goods services (because the demand for output is proportional to real money balances according to the simple money demand function that is implied by the quantity theory of money). Here’s an explanation of the AD curve slope that doesn’t refer to the simple money demand function: A fall in P reduces real money balances. In order to buy the same amount of stuff, velocity would have to increase. But, by definition, velocity is constant along the AD curve. For simplicity, suppose V = 1. With lower real money balances (or, equivalently, the same nominal balances but higher goods prices), people demand a smaller quantity of goods and services. * For future reference (a bunch of slides later in this chapter), it will be useful to see how a change in M shifts the AD curve. Pages 264-5 discuss the shift. Here’s the idea: With velocity fixed, the quantity equation implies that PY is determined by M. An increase in M causes an increase in PY, which means higher Y for each value of P, or higher P for each value of Y. Or: for a given value of P, an increase in M implies higher real money balances. In the simple money demand function associated with the Quantity Theory, the demand for real balances is proportional to the demand for output, so output must rise at each P in order for real money demand to rise and equal the new, higher supply of real balances M/P. Or, if you like, just have your students take on faith that an increase in the money supply shifts the AD curve to the right for now, telling them that they will learn how this works in Chapters 10 and 11. * Some textbooks also use the term “potential GDP” to mean the full-employment level of output