AGGD_SCLASS - SR Keynesian Macro Aggregate Demand and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 1 SR Keynesian Macro –Aggregate Demand and Supply s The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. s “In the long-run we are all dead” ( depressionunemp / keynes singalong) What’s Doing in the News? 2 Course Issues s 9/15 last day to add/drop s Last Thursday clicks don’t count s Images, chat rooms, how to do hw s Iclicker.com support/register NetID, serial number b Smith not 123006789 b Can’t read serial number –Support/find your id s Learning Resource Centers http://lrc.rutgers.edu/contact.shtml b 1 point (of 1000) EC – signed question sheet 3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 4 Output and Prices in SR (Keynesian) s Aggregate D&S b s Agg D=C+I+G+NX b C=f(Y-T,Wealth) b I=f(i) G exog NX s Agg D downward sloping P ↓→ M/P ↑→ r ↓→ I ↑ → D ↑→ (p,y) s Aggregate S curve Qs=f(P) cet. par. Upward sloping s reflects cost, technology, etc s P up -> profit up and Qs up s Cet. Par. - Particularly wages 5 What Shifts Aggregate Demand Curve? s D = C, I, G, NX (=X-M) b Anything that changes components s C=f(Y-T,W,Expectations) b Disposable income b Wealth effect – stock mkt, housing, real assets s I=f(r, expectations) s Purchase of physical capital – plant s animal spirits s r up, I down s G, NX exogenous for now s Fiscal policy G->D T->(Y-T)->C->D s Monetary Policy 6 What Factors Shift SR Aggregate Supply? b
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/08/2011 for the course ECONOMICS 220:103 taught by Professor Sheflin during the Spring '08 term at Rutgers.

Page1 / 8

AGGD_SCLASS - SR Keynesian Macro Aggregate Demand and...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online