[经济学]中级宏观经济学Abel_Chapter08.pptVIP

Copyright ? 2009 Pearson Education Canada 8-* The LRAS Curve The LRAS is a vertical line. In the long run all firms will adjust their prices so that they can produce at their normal level of output. For the economy as a whole it will be a the full-employment level of output, . Copyright ? 2009 Pearson Education Canada 8-* Aggregate Demand Shocks An aggregate demand shock is a change in the economy that shifts the AD curve. An adverse AD shock shifting the AD curve down will cause output to fall in the SR, but not in the LR. Copyright ? 2009 Pearson Education Canada 8-* Aggregate Demand Shocks (continued) Classical economists think that the LR equilibrium will be restored quickly. Little is gained by the government trying to fight recessions. Copyright ? 2009 Pearson Education Canada 8-* Aggregate Demand Shocks (continued) Keynesians argue that prices do not adjust quickly, so that recessions may be prolonged, and the government can help to fight it. Copyright ? 2009 Pearson Education Canada 8-* Aggregate Supply Shocks Classical economists view aggregate supply shocks as the major force behind changes in output and employment. An adverse AS shock shifts the LRAS curve to the left thus reducing long-run output and increasing long-run price level. Copyright ? 2009 Pearson Education Canada 8-* Aggregate Supply Shocks (continued) Keynesians agree with the long-run effects that supply shocks can have, but view the adjustment process to the new equilibrium differently. Chapter 8 Business Cycles Copyright ? 2009 Pearson Education Canada Copyright ? 2009 Pearson Education Canada 8-* Introduction to Business Cycles The business cycle is a central concern in macroeconomics, because business cycle fluctuations are felt throughout the economy. Copyright ? 2009 Pearson Education Canada 8-* Introduction to Business Cycles (continued) The two basic questions are: What causes business cycles? How policymakers should respond to cyclical fluctuations? Copyright ? 2009 Pearson Educ