TAILIEUCHUNG - Ebook Macroeconomics policy and practice: Part 2

(BQ) Part 2 book "Macroeconomics policy and practice" has contents: The aggregate demand and supply model; macroeconomic policy and aggregate demand and supply analysis; the financial system and economic growth; financial crises and the economy; fiscal policy and the government budget,.and other contents. | 12 The Aggregate Demand and Supply Model Preview In 2007 and 2008, the . economy encountered a perfect storm. Oil prices more than doubled, climbing to a record high of over $140 per barrel by July 2008 and sending gasoline prices to over $4 per gallon. At the same time, defaults by borrowers with weak credit records in the subprime mortgage market seized up the financial markets and caused consumer and business spending to decline. The result was a severe economic contraction at the same time that the inflation rate spiked. To understand how developments in 2007–2008 had such negative effects on the economy, we now put together the aggregate demand and aggregate supply concepts from the previous three chapters to develop a basic tool, aggregate demand and supply analysis. As with the supply and demand analysis from your earlier economics courses, equilibrium occurs at the intersection of the aggregate demand and aggregate supply curves. Aggregate demand and supply analysis is a powerful tool for studying short-run fluctuations in the macroeconomy and analyzing how aggregate output and the inflation rate are determined. The analysis will help us interpret episodes in the business cycle such as the recent severe recession in 2007–2009. In addition, in later chapters it will also enable us to evaluate the debates on how economic policy should be conducted. Recap of the Aggregate Demand and Supply Curves As a starting point, let’s take stock of the building blocks for the aggregate demand and aggregate supply model that we developed across Chapters 9–11 by revisiting the aggregate demand and aggregate supply curves. 284 CHAPTER 12 • THE AGGREGATE DEMAND AND SUPPLY MODEL 285 The Aggregate Demand Curve Recall that the aggregate demand curve indicates the relationship between the inflation rate and the level of aggregate output when the goods market is in equilibrium, that is, when aggregate output equals the total quantity of output demanded. We saw in Chapter

• Kinh tế học
• Macroeconomics policy
• The aggregate demand
• Supply model
• Supply analysis
• Economic growth
• Financial crises
• Fiscal policy
• The government budget
• Macroeconomics principles
• An introduction to macroeconomics
• Aggregate demand
• The powerful consumer
• Supply and demand
• Lecture Macroeconomics
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Science of macroeconomics
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Practice of macroeconomics
• Measuring macroeconomic data
• Aggregate production
• Business cycles
• Macroeconomics principles and policy
• The banking system
• Budget deficits
• International trade
• Comparative advantage
• The financial crisis
• The great recession
• Exchange rates
• Macroeconomic problems
• International macroeconomic policy issues
• Macro policy
• Phillips curve
• Economic theory
• Expansionary fiscal policy
• Substantive issues
• The fundamental economic problem
• The goals of macroeconomic policy
• Macroeconomic policy
• he powerful consumer
• Monetary policy
• Wealth effect
• Interest rate effect
• Exchange rate effect
• Lecture Macroeconomics in context
• Government Spending
• Public Budgets in Europe
• Policy Issues
• Demand side policies
• Short run Keynesian policy model
• Classical long run policy model
• Supply side policies
• Central bank
• Fiscal policy dilemma
• International trade policy
• Balance of trade
• International financial policy
• Balance of payments account
• Exchange rate goal
• Developing countries
• Macroeconomic activity
• Macroeconomic environment
• Financial system
• Legislative mandates
• Bank of Canada
• Interest rates
• Federal reserve balance sheet
• Macroeconomics private
• Public choice
• Stabilization policy
• International finance
• The foreign exchange market
• European Central Bank
• Aggregate Expenditure