TAILIEUCHUNG - Ten Principles of Economics - Part 75

Ten Principles of Economics - Part 75. Economics is the study of how society manages its scarce resources. In most societies, resources are allocated not by a single central planner but through the combined actions of millions of households and firms. Economists therefore study how people make decisions: how much they work, what they buy, how much they save, and how they invest their savings. Economists also study how people interact with one another. | CHAPTER 33 THE SHORT-RUN TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT 765 In panel b of the figure we can see what these two possible outcomes mean for unemployment and inflation. Because firms need more workers when they produce a greater output of goods and services unemployment is lower in outcome B than in outcome A. In this example when output rises from 7 500 to 8 000 unemployment falls from 7 percent to 4 percent. Moreover because the price level is higher at outcome B than at outcome A the inflation rate the percentage change in the price level from the previous year is also higher. In particular since the price level was 100 in year 2000 outcome A has an inflation rate of 2 percent and outcome B has an inflation rate of 6 percent. Thus we can compare the two possible outcomes for the economy either in terms of output and the price level using the model of aggregate demand and aggregate supply or in terms of unemployment and inflation using the Phillips curve . As we saw in the preceding chapter monetary and fiscal policy can shift the aggregate-demand curve. Therefore monetary and fiscal policy can move the economy along the Phillips curve. Increases in the money supply increases in government spending or cuts in taxes expand aggregate demand and move the economy to a point on the Phillips curve with lower unemployment and higher inflation. Decreases in the money supply cuts in government spending or increases in taxes contract aggregate demand and move the economy to a point on the Phillips curve with lower inflation and higher unemployment. In this sense the Phillips curve offers policymakers a menu of combinations of inflation and unemployment. I QUICK QUIZ Draw the Phillips curve. Use the model of aggregate demand and aggregate supply to show how policy can move the economy from a point on this curve with high inflation to a point with low inflation. SHIFTS IN THE PHILLIPS CURVE THE ROLE OF EXPECTATIONS The Phillips curve seems to offer policymakers a .

• Quản lý Nhà nước
• 10 nguyên tắc trong kinh tế học
• Nguyên lý kinh tế
• chi phí cơ hội
• quản lý nguồn lực
• opportunity cost
• in the overall economy
• Sáng kiến kinh nghiệm
• Sáng kiến kinh nghiệm THPT
• Sáng kiến kinh nghiệm môn Sinh học 10
• Nguyên tắc giáo dục phát triển năng lực
• Cấu trúc tế bào