鲁迪格·多恩布什-宏观经济学（第十三版）IPPTChap006.pptVIP

Aggregate Supply and the Phillips CurveChapter #6Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. IntroductionFurther develop the AS side of the economy; examine the dynamic adjustment process from the short run to the long runThe price-output relationship is based upon links between wages, prices, employment, and output ? link between unemployment and inflation = Phillips CurveTranslate between unemployment and output, inflation and price changesIntroduce role of price and inflation expectations, and the “rational expectations revolution”NOTE: theory of AS is the least settled area in macroDon’t fully understand why W and P are slow to adjust, but offer several theoriesAll modern models differ in starting point, but reach the same conclusion: SRAS is flat, LRAS is vertical6-2 Inflation and UnemploymentFigure 6.1 shows U.S. unemployment over several decadesSeveral periods of high unemployment: early 1960s, mid 1970’s, early-mid 1980’s, early 1990s, and the current periodSeveral periods of low unemployment: late 1960’s, early 2000, and 20076-3 Inflation and UnemploymentPhillips curve (PC) shows the relationship between unemployment and inflationAlthough GDP is linked to unemployment, it is easier to work with the PC than the AS when discussing unemployment6-4 The Phillips Curve 6-5In 1958 A.W. Phillips published a study of wage behavior in the U.K. between 1861 and 1957The main findings are summarized in Figure 6.2There is an inverse relationship between the rate of unemployment and the rate of increase in money wagesFrom a policymaker’s perspective, there is a tradeoff between wage inflation and unemployment The Phillips CurveThe PC shows the rate of growth of wage inflation decreases with increases in unemploymentIf Wt = wage this periodWt+1 = wage next periodgw = rate of wage inflation, then (1)If ?* represents the natural rate of unemplo