Aggregate Output, Prices, and Economic Growth II
About the Lecture
The lecture Aggregate Output, Prices, and Economic Growth II by Edu Pristine is from the course Archiv - Economics. It contains the following chapters:
- Aggregate supply curve
- Shifts
- Shift in Aggregate Demand curve
- Shift in the LAS and SAS curve
Author of lecture Aggregate Output, Prices, and Economic Growth II
Edu Pristine
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Excerpts from the accompanying material
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... and how they combine to generate the aggregate demand curve ...
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... all the other factor are constant. " The IS curve shows the negative relationship between the real interest rate and level of aggregate income that are equal to planned expenditure at each real interest rate. " The LM curve shows, for a given level of the real money supply, a positive relationship between the real interest rate and level of aggregate income at which demand and suppl y of real money balance ...
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... " The money supply curve on a graph with interest rate on the Y-axis & quantity of real money on the X-axis, ...
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... money supply is independent of the level of interest rate & is determined by the central ...
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... curve best describes a positive relationship between real interest rate and aggregate income for a given le vel of ...
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... a positive relationship between real interest rate and ag gregate income at which demand and supply of real money balances are ...
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... Long run Aggregate supply (LAS) Price LevelShort run Aggregate supply (SAS) " The level of real GDP on the LAS curve is the economy's level of production when the economy is operating at full employment " Over time, the LAS curve may shift: As the full-employment quantity of labor changes, As the amount of available ...
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... changes but price of input remains constant " When prices of goods and services rise (fall), businesses have an incentive to expand (reduce) production, and rea l GDP will increase (decrease) above (below) the full- employment level shown by the LAS curve " Hence real GDP is upward sloping function of price level along the ...
