TAILIEUCHUNG - Ebook Macroeconomics principles and policy (11th edition): Part 2

(BQ) Part 2 book "Macroeconomics principles and policy" has contents: Money and the banking system, money and the banking system, budget deficits in the short and long run, international trade and comparative advantage, exchange rates and the macroeconomy,.and other contents. | Find more at Licensed to: Bringing in the Supply Side: Unemployment and Inflation? We might as well reasonably dispute whether it is the upper or the under blade of a pair of scissors that cuts a piece of paper, as whether value is governed by [demand] or [supply]. ALFRED MARSHALL T he previous chapter taught us that the position of the economy’s total expenditure (C 1 I 1 G 1 (X 2 IM)) schedule governs whether the economy will experience a recessionary or an inflationary gap. Too little spending leads to a recessionary gap. Too much leads to an inflationary gap. Which sort of gap actually occurs is of considerable practical importance, because a recessionary gap translates into unemployment whereas an inflationary gap leads to inflation. But the tools provided in Chapter 9 cannot tell us which sort of gap will arise because, as we learned, the position of the expenditure schedule depends on the price level—and the price level is determined by both aggregate demand and aggregate supply. So this chapter has a clear task: to bring the supply side of the economy back into the picture. Doing so will put us in a position to deal with the crucial question raised in earlier chapters: Does the economy have an efficient self-correcting mechanism? We shall see that the answer is “yes, but”: Yes, but it works slowly. The chapter will also enable us to explain the vexing problem of stagflation—the simultaneous occurrence of high unemployment and high inflation—which plagued the economy in the 1980s and which some people worry may stage a comeback. C O N T E N T S PUZZLE: WHAT CAUSES STAGFLATION? THE AGGREGATE SUPPLY CURVE Why the Aggregate Supply Curve Slopes Upward Shifts of the Aggregate Supply Curve EQUILIBRIUM OF AGGREGATE DEMAND AND SUPPLY ADJUSTING TO A RECESSIONIONARY GAP: DEFLATION OR UNEMPLOYMENT? Why Nominal Wages and Prices Won’t Fall (Easily) Does the Economy Have a Self-Correcting Mechanism? An Example from Recent History: Deflation in

• Kinh tế học
• Macroeconomics principles
• Macroeconomics principles and policy
• The banking system
• The banking system
• Budget deficits
• International trade
• Comparative advantage
• Macroeconomics policy
• An introduction to macroeconomics
• Aggregate demand
• The powerful consumer
• Supply and demand
• Principles of economics
• Lecture Principles of economics
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• mankiw
• macroeconomics
• principles of macroeconomics
• Ten Principles of Economics
• Th inking Like an Economist
• Interdependence and the Gains from Trade
• Brief principles
• Brief principles of macroeconomics
• The financial system
• The gains from trade
• The real economy
• The financial crisis
• The great recession
• Exchange rates
• Method of economic
• Supply applications
• Introduction to macroeconomics
• Equilibrium output
• Fiscal policy
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Data of macroeconomics
• Aggregate supply
• The open economy
• The macroeconomy
• Financial crises
• Developing economies
• Alternative views
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies