21 The AD - AS Model, Part 1-1

21 The AD - AS Model, Part 1-1 - Agenda Business Cycle...

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1 21-1 The IS – LM / AD – AS Model: A General Framework for Macroeconomic Analysis, Part 1 21-2 Agenda •Bu s in e s s Cy c l e An a ly s i s : A P r ev i ew . •Th e P rob l em o f Un em p
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2 21-5 Business Cycle Analysis: A Preview AD and AS —A brief introduction: ¾ The aggregate demand ( AD ) curve: •Show s quan t i ty o f good s and services demanded ( Y ) for any price level ( P ). •A h ighe r P means less aggregate demand (lower Y ), –The agg rega te demand cu rve s lope s downwa rd . •An inc rea se in
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3 21-9 Business Cycle Analysis: A Preview AD and AS —A brief introduction: ¾ The long-run aggregate supply ( LRAS ) curve: •The long - run agg rega te supp ly cu rve show s how much output ( Y ) producers are willing to supply in the long- run at any given price level ( P ). •The long - run agg rega te supp ly cu rve i s ve r t ica l
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This note was uploaded on 07/29/2010 for the course UGBA 100b taught by Professor Wood during the Summer '10 term at University of California, Berkeley.

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21 The AD - AS Model, Part 1-1 - Agenda Business Cycle...

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