Static Aggregate Supply and Demand I: Econ 104, Sec. 3, Fa19.pdf - Static Aggregate Supply and Demand I Econ 104 Sec 3 Fa19 下午12(09 Static Aggregate

Static Aggregate Supply and Demand I: Econ 104, Sec. 3, Fa19.pdf

This preview shows page 1 - 4 out of 9 pages.

2019/12/23 下午 12(09 Static Aggregate Supply and Demand I: Econ 104 , Sec. 3 , Fa19 1 ໚页(共 9 ໚页) * ํԶᳯ᷌੢๚ᦇړ Static Aggregate Supply and Demand I ౼ྊ෸ᳵ ෫౼ྊ෸ᳵ ஑ړ 9 ᳯ᷌ 9 ෸ᳵᴴګ ꧋ᦜጱ੤ᦶེහ 2 ੤ᦶܲݥᦕ୯ ੤ᦶ ෸ᳵ ړහ כኸ ੤ᦶ 2 3,298 ړᰦ 6 ҅ჿړ 9 ړ * ๋ෛ ੤ᦶ 2 3,298 ړᰦ 6 ҅ჿړ 9 ړ * ੤ᦶ 1 434 ړᰦ 6 ҅ჿړ 9 ړ * ൉Ի෸ᳵ 12 18 0:02 1 / 1 ړ ᳯ᷌ 1 ___ is not part of disposable income. income T G ྋᏟ ྋᏟ ! transfers
Image of page 1
2019/12/23 下午 12(09 Static Aggregate Supply and Demand I: Econ 104 , Sec. 3 , Fa19 2 ໚页(共 9 ໚页) Disposable income (a more accurate term might be "usable income") is total income - taxes + transfer payments. Thus, when taxes rise, households have less income to purchase things with. When transfer payment grow (like seniors or the disabled receiving Social Security benefits), usable income grows. Note that most income is received from work. Also, transfer payments (i.e. benefits) can change independently of the taxes that pay for them. The government makes up the difference by borrowing. 1 / 1 ړ ᳯ᷌ 2 An increase in P has the same effect on the AD curve as an increase in G. true false ྋᏟ ྋᏟ !
Image of page 2
2019/12/23 下午 12(09 Static Aggregate Supply and Demand I: Econ 104 , Sec. 3 , Fa19 3 ໚页(共 9 ໚页) When P rises, you move up along the AD curve (up and left, to be precise). When G rises (i.e. more purchases by the government), the AD curve moves right. We analyze change in AD (and SRAS for that matter) with P fixed unless P is explicitly changed. 1 / 1 ړ ᳯ᷌ 3 Say that both G and T grow. The AD curve then ___.
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 9 pages?

  • Fall '10
  • staff

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors