Section17 - UNIVERSITY OF CALIFORNIA, BERKELEY Department...

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UNIVERSITY OF CALIFORNIA, BERKELEY Dorian Carloni Department of Economics ECON 100B, Fall 2011 SECTION 17: The Aggregate Demand and Supply Model, Part 1 17.1. The Aggregate Demand and Supply Curves 17.1.1. The Aggregate Demand Curve The aggregate demand curve, AD, is the when the goods market is in equilibrium . 2. Reduces planned expenditures, and 3. Reduces the equilibrium level of output The AD curve will shift whenever there is: 1. A change in autonomous consumption, 2. A change in autonomous investment, 3. A change in autonomous government purchases, 4. A change in autonomous taxes, 5. A change in autonomous net exports, or 6. A change in autonomous monetary policy 17.2.1 The Aggregate Supply Curves 1. LRAS: The long-run aggregate supply curve, LRAS, is the economic output . 1. No change in the factors of production, 2. No change in total factor productivity, and 3. No change in the natural rate of unemployment The LRAS curve will shift whenever there is:
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This note was uploaded on 03/18/2012 for the course ECON 100B taught by Professor Wood during the Spring '08 term at University of California, Berkeley.

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Section17 - UNIVERSITY OF CALIFORNIA, BERKELEY Department...

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