武汉大学金融系各科课件初级宏PART SEVEN Unemployment, Inflation, and Economic Policy.ppt

Part 5----Basis of Macroeconomics Chapter 20 Overview of Macroeconomics Chapter 21 Measuring Economic Activity Chapter 22 Consumption and Investment Chapter 23 Business Fluctuations and the Theory of Aggregate Demand Chapter 24 The Multiplier Model Chapter 25 Money, Banking, and Financial Markets Chapter 26 Central Banking and Monetary Policy Part 5----Basics of Macroeconomics Part 6----Economic Growth and Economic Policy Chapter 27 The Process of Economic Growth Chapter 28 The Challenge of Economic Development Chapter 29 Exchange Rates and the International Financial System Chapter 30 Open-Economy Macroeconomics Part 7 Unemployment, Inflation, and Economic Policy Chapter 31 Unemployment Chapter 32 Inflation Chapter 33 Schools of Macroeconomics Chapter 31 Unemployment and the Foundations of Aggregate SupplyPrice Considered The Behavior of the production side of the economy GDP determination, combining aggregate demand with aggregate supply. Price considered. 1. Aggregate Supply (AS) (31A) The Behavior of the production side of the economy. 1.1 What is AS (661) AS----Total output at given general price level AS Curve (or Schedule)----relationship bt. AS or GDP and general price level. Basis of output decision: ratio of price level to costs. 1.2 Determinants of AS Curve(662L-664L) Potential Output Inputs (resources) Technology Production Costs Labor cost----wages Other costs----interest rate AS vs. AS Curve Determination Potential output Potential output Costs Costs Price Level 1.3 AS: the Short Run and the Long Run (664L-665L) Short-run AS ----Upward sloping emphasized by Keynesian School Long-run AS -----Vertical