Chapter 8 Aggregate Supply and Unemployment总供给和失业.ppt

※ Minimum-Wage Law Public Policy and Job Search Government programs can affect the time it takes unemployed workers to find new jobs. These programs include the following: Government-run employment agencies Public training programs Unemployment insurance * * Chapter 8 Aggregate Supply and Unemployment 1 Aggregate Supply 2 Unemployment 1 Aggregate Supply 1.1 Determinants of AS ※Aggregate supply describes the relationship between the output that businesses willingly produce and the overall price level, other things being constant. AS = F ( Labor, Land, Capital, Technology, Institution ) = F ( Potential Output, Input cost) ※ Potential Output: sustainable, without inflation, not maximum output ※ Input cost: wage, foreign price, oil price, policy How Do Growth in Potential Output and Cost Increases Affect Aggregate Supply? In Reality, Aggregate Supply Shifts Combine Cost Increases and Increased Potential Output AS Is Relatively Flat in the Short Run but Turns Vertical in the Long Run 1.2 Aggregate Supply in the Short Run Why the Aggregate-Supply Curve Slopes Upward in the Short Run ※ Why the Aggregate-Supply Curve Slopes Upward in the Short Run ◎The Misperceptions Theory ◎The Sticky-Wage Theory ◎The Sticky-Price Theory ※ AD policies are effective. 1.3 Aggregate Supply in the long Run ※ The Long-Run Aggregate-Supply Curve The long-run aggregate-supply curve is vertical at the natural rate of output. This level of production is also referred to as potential output or full-employment output. ※ The misperceptions, the sticky-wage and the sticky-price will change in the long run. ※ AD policies are ineffective. 2 Unemployment 2.1 Measuring of Unemployment ※ Unemployment is measured by the Bureau of Labor Statistics (BLS). It surveys 60,000 randomly selected households every month. The survey is called the Current Population Survey. ※ Based on the answers