全球视角宏观经济学课件.pptVIP

How much labor and consumption workers actually choose depends both on the utility function and on the real wage level. C0 = (w/p) 0 C1 =3 (w/p) 0 C L Z1[(w/p) 1 (w/p) 0 ] Z0[ (w/p) 0 ] 1 2 3 第三十页，共八十五页。 C L UL2 UL1 Z1[(w/p) 1 ] Z2[(w/p) 2 ] C2 C1 (w/p) L (w/p) 1 (w/p) 2 L 1 L 2 第三十一页，共八十五页。 Substitution effect and Income effect Substitution effect means that each hour of leisure represents a greater amount of forgone consumption of goods when the real wage goes up. With leisure more expensive, households “substitute” away from it and choose longer working hours. Income effect works to reduce labor supply when wages increase. The effect of a rise in wages on the supply of labor is theoretically ambiguous: the substitution effect tends to increase L, the income effect tends to decrease L. The relative influence of these two effects depends on household preferences. 第三十二页，共八十五页。 The Classical Approach to Aggregate Supply We already derived the Aggregate supply function, the demand for labor, and the supply of labor. Now we combine these and summarize the results in an aggregate supply curve. The Main idea of classical approach For any price level, the nominal wage is fully flexible and adjusts to keep the supply of labor and the demand for labor equilibrated. Thus, the real wage is determined so as to clear the labor market. 第三十三页，共八十五页。 Q L Qf Q(K0, L) (w/p) L Lf LD LS P Q QS 第三十四页，共八十五页。 Deriving the aggregate supply curve How does the supply of aggregate output respond when the price level increase? 第三十五页，共八十五页。 Q L (w/p) L P Q 第三十六页，共八十五页。 Unemployment in the classical approach Amendments to the basic model One amendment allows for the fact that some people may choose voluntarily to be unemployed, at least for short periods of time. A second amendment emphasizes that various forces in the labor market-- laws, institutions, traditions-- may prevent the real wage from moving to its full-employment level. If the