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Aggregate supply

Krugman Macroeconomics Chapter 20

Subject: 
Economics
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economics
macroeconomics
Public finance
demand
monetary policy
inflation
Inflationary gap
Fiscal policy
business cycle
Aggregate demand
unemployment
Aggregate supply
Aggregate supply
Business
Politics
Social Issues

Module 20: Economic Policy and the Aggregate Demand? Aggregate Supply Model How the AD?AS model is used to formulate macroeconomic policy The rationale for stabilization policy Why fiscal policy is an important tool for managing economic fluctuations Which policies constitute expansionary fiscal policy and which constitute contractionary fiscal policy ? ? Economy is self-correcting in the long run: it will eventually trend back to potential output Stabilization policy: is the use of government policy to reduce the severity of recessions and rein in excessively strong expansions ? Policy in the Face of Demand Shocks Monetary and fiscal policy shift the aggregate demand curve

Krugman AP Macroeconomics Module 19

Subject: 
Economics
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Tags: 
economics
macroeconomics
demand
inflation
AD-AS model
Economic theories
Supply and demand
Aggregate supply
Inflationary gap
Aggregate demand
Supply shock
Stagflation
behavior
Human development
Computing
Computer file formats
Electronic documents
Interpersonal relationships
Psychoanalysis
Human behavior
Portable Document Format
Attachment theory
Technology
Business

Module 19: Equilibrium in the Aggregate Demand-Aggregate Supply Model -The difference between short-run and long-run macroeconomic equilibrium -The causes and effects of demand shocks and supply shocks -How to determine if an economy is experiencing a recessionary gap or an inflationary gap and how to calculate the size of output gaps The AD?AS Model: the aggregate supply curve and the aggregate demand curve are used together to analyze economic fluctuations Price shock: dramatic fall in short-run aggregate supply Short-Run Macroeconomic Equilibrium: when the quantity of aggregate output supplied is equal to the quantity demanded Short-run equilibrium aggregate output: the quantity of aggregate output produced in the short-run macroeconomic equilibrium
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