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

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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
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 !
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 ___.

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