宏观经济学课件：8 AD and AS.pptVIP

Policy 2: Increase money supply. Step 1. AS1 shifts left to AS2, and causes output to fall, price level increases. Step 2. AD curve shifts to the right. Output increases and price level rises. 政府采取扩张的货币政策 货币供给上升，带动总需求上升，使总需求曲线向右边移动，经济产量增加。导致物价水平上升。平衡点为C点。 Government policy can move the AD curve to the right and let the output level to move back to its natural rate. Question: Can the government increase output and reduce the price level at the same time? Government can change aggregate demand but cannot offset (cancel) both of the adverse effects of stagflation (inflation and unemployment) at the same time. EFFECTS OF A SHIFT IN AD How does a stock market crash impact the output in the economy? The AD curve shifts to the left. Output falls and price level decreases. Government policies that can increase output. Policy 1: Do nothing. Policy 2: Increase money supply. NEW OUTPUT Policy 1: DO nothing. 1. AD moves to the left and output falls and price level falls. 2. AS moves to the right. ( Expected price level decreases) Output increases to natural output and price level falls further. 政府不采取政策 当发生经济衰退时， 失业率上升，使工资下降。预期物价水平随着工资下降而降低， 总供给曲线向右边移动。经济到达平衡点C。 当经济繁荣时期，失业率减少，使工资增加。预期物价水平随工资上升而增加，总供给曲线向左边移动。 Policy 2: Increase money supply and Aggregate demand. AD shifts to the right. Natural output, price level does not change. Point A. 政府采取扩张的货币政策 货币供给上升，带动总需求上升，使总需求曲线向右边移动，经济产量增加。导致物价水平上升。平衡点为A点。 IN THE LONG RUN. In the long run, the decrease in aggregate demand can be seen solely by the drop in the equilibrium price level. Thus, the long-run effect of a change in aggregate demand is a nominal change (in the price level) but not a real change (output is the same). PROBLEMS 7 , 8 10 1. Investment is more variable than consumer spending over the business cycle because firms can curtail investment spending more easily than households can curtail consumption spending. In recessions, firms know they won’t be able to sell as many goods, so they want to p