专业英语教程方案.ppt

how dose the failure of workers and firms to predict the price level result in an upward-sloping SARS curve? 1 Contracts make some wages and prices sticky 2 Firms are often slow to adjust wages 3 Menu costs make some prices sticky Aggregate Demand and Aggregate Supply Analysis CHAPTER 12 Chapter Outline and Learning Objectives 12.1 Aggregate Demand 12.2 Aggregate Supply 12.3 Macroeconomic Equilibrium in the Long Run and the Short Run 12.4 A Dynamic Aggregate Demand and Aggregate Supply Model Appendix: Macroeconomic Schools of Thought Aggregate demand and aggregate supply model Figure 12.1 Aggregate Demand and Aggregate Supply In the short run, real GDP the price level are determined by the intersection of the aggregate demand curve the aggregate supply curve. Real GDP is measured on the horizontal axis, and the price level is measured on the vertical axis by the GDP deflator. Aggregate demand (AD) curve A curve that shows the relationship between the price level and the quantity of real GDP demanded by households, firms, and the government. Short-run aggregate supply (SRAS) curve A curve that shows the relationship in the short run between the price level and the quantity of real GDP supplied by firms. Recall the four components of GDP: consumption (C), investment (I), government purchases (G), and net exports (NX). If we let Y stand for GDP, we have the following relationship: Y = C + I + G + NX A. Why Is the Aggregate Demand Curve Downward Sloping? (1) The Wealth Effect: How a Change in the Price Level Affects Consumption Some of a household’s wealth is held in cash or other nominal assets that lose value as the price level rises gain value as the price level falls. When the price level falls, the real value of household wealth rises, and so will consumption and the demand for goods and services. The aggregate demand curve is downward sloping because a fall in the price level increases the quantity of real GDP demanded. To see why, we