文档介绍：Intermediate Macroeconomics
Lecture 9
Questions from Last Lecture
Demand for money ↑
D ↑while S fixed
L(r,Y): hold r &↓Y to balance the pressure of D ↑; hold Y, ↑r to balance
r
Y
LM
IS
IS-LM as a Theory of Aggregate Demand
IS-LM model shows the relationship between r and Y at a given price level
What if P changes?
P↑(M/P)↓
M/P2
P2
AD
r
M/P
L(r,Y)
M/P1
Y
r
IS
LM
P1
P
Y
IS-LM as a Theory of Aggregate Demand
Change in ary policy
r
Y
IS
LM
AD
Y
P
IS-LM as a Theory of Aggregate Demand
Change in Fiscal Policy
r
Y
IS
LM
AD
Y
P
Aggregate Supply
4 models of AS
Inflation, unemployment & the Philips curve
New Keynesian economics
4 Models of AS
The sticky-wage model
P↑
real wage (W/P)↓
labor employment↑
Y ↑
L
W/P
L
Y
Y
P
AS
4 Models of AS
Two parties set the nominal wage based on target real wage and their expected price level
4 Models of AS
The worker-misperception model
Wages are free to equilibrate S & D
However,
Workers temporarily confuse real and nominal wage (or workers do not know what the true price level is so that they have no idea of what the real wage is)
4 Models of AS
Labor S and labor D now based on different real wage rates