Chapter 10 공책 정리

Chapter 10 공책 정리

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Chapter 10. Aggregate Demand I: Building the IS–LM Model - Classical theory hardly changed any between 1929 and 1933 b. seemed incapable of explaining the Depression c. - John Maynard Keynes’ theory a. low aggregate demand is responsible for the low income and high unemployment that characterize economic downturns b. criticized classical theory for assuming that aggregate supply alone—capital, labor, and technology—determines national income c. ch9 h theory ± ²• economists ³´ K theory h reconcile p : In the long run, prices are flexible, and aggregate supply determines income. But in the short run, prices are sticky, so changes in aggregate demand influence income d. Keynes’ IS-LM Theory (IS: investment µ saving, LM: liquidity µ money) 1. Model of aggregate demand: The goal of the model is to show what determines national income for a given price level 2. shows what causes income to change in the short run when the price level is fixed > shows what causes the aggregate demand curve to shift 3. the interest rate influences both investment and money demand, it is the variable that links the two halves of the IS–LM model 4. shows how interactions between the goods and money markets determine the position and slope of the aggregate demand curve and, therefore, the level of national income in the short run 10.1 The Goods Market and the IS Curve 10.1.1 The Keynesian Cross - Keynes’ General Theory: proposed that an economy’s total income was, in the short run, determined largely by the spending plans of households, businesses, and government - The more people want to spend, the more goods and services firms can sell. The more firms can sell, the more output they will choose to produce and the more workers they will choose to hire - Keynes viewed that the problem during recessions and depressions was inadequate spending - the Keynesian cross shows how income Y is determined for given levels of planned investment I and fiscal policy G and T Planned Expenditure - = the amount households, firms, and the government would like to spend on goods and services - Actual expenditure: the amount households, firms, and the government spend on goods and services
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= the economy’s gross domestic product (GDP) - Actual h planned expenditure f •“ T ± Q • }) , f ² “K inventories go down, S ²• inventories go up - Because these unplanned changes in inventory are counted as investment spending by Firms, actual expenditure can be either above or below planned expenditure - f ² • “ Planned Expenditure a. assumption: closed economy – no exports and imports From and to Foreign countries
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Chapter 10 공책 정리

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