This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 1 LR Adjustment, Inflation & Policy Key Points Vertical LR AS again Inflation SR & LR Expectations and Shifts in the Short-Run Phillips Curve Long-Run Phillips Curve vertical No trade-off 1 Monetary and Fiscal Policy - LR Issues Friedman infl causes Delong p curve shift Keynes General Theory Why did Keynes call his theory General? And why was it so hard for him to come up with it? 2 See annotated chapters 1965 In the News? 3 Sandy Huf aker for The New York Times Andy Lindlof with his daughter, Juliana, as he trades stocks from home. He says he earns six-figure returns, which would put him in the rarefied category of profitable day trader. Day traders are still out there, betting that they can beat the odds and make money. And since the recession, many figure they cant do any worse than Wall Street. 2 Course Issues Grades and grading Advise 3 - Careers The End is Almost Near Finals, etc info 4 Finals, etc info coming ODE Forecasting Competition Investment Game ShortRun to LongRun Agg Supply SR & LR Equilib at 1 Output at Yn U at Un Agg D increases to AD2 SR equilib at 2 P up, nom W unchanged sticky, Y up, U down, *below* Un (note...
View Full Document