Ebook Macroeconomics - Policy and practice (2nd edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Macroeconomics - Policy and practice (2nd edition): Part 2
Ebook Macroeconomics - Policy and practice (2nd edition): Part 2
Aggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul Sa Ebook Macroeconomics - Policy and practice (2nd edition): Part 2amuelson and Robert Solow and pursued expansionary macroeconomic policies to raise inflation a little bit, with the expectation that unemployment would be permanently lower. They were disappointed when, in the late 1960s and the 1970s, inflation accelerated and yet the unemployment rate stayed uncom Ebook Macroeconomics - Policy and practice (2nd edition): Part 2fortably high. To understand why they were wrong, we turn to a concept called the Phillips curve, which describes the relationship between unemploymenEbook Macroeconomics - Policy and practice (2nd edition): Part 2
t and inflation.In the preceding chapter, we derived the aggregate demand curve, which shows the relationship between the inflation rate and the levelAggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul Sa Ebook Macroeconomics - Policy and practice (2nd edition): Part 2des half of the story; we also need to factor in the relationship between these two variables that is provided by the aggregate supply curve, which we develop in this chapter.The Phillips curve provides the intuition for the aggregate supply curve. First, we will see how the economic profession’s vi Ebook Macroeconomics - Policy and practice (2nd edition): Part 2ews on the Phillips curve have evolved over time and how this evolution has affected thinking about macroeconomic policy. Then we can use the PhillipsEbook Macroeconomics - Policy and practice (2nd edition): Part 2
curve to derive the aggregate supply curve, which will allow US to complete our basic aggregate demand-aggregate supply framework for analyzing shortAggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul Sa Ebook Macroeconomics - Policy and practice (2nd edition): Part 2hat examined the relationship between unemployment and wage growth in the United Kingdom.1 For the years 1861 to 1957, he found that periods of low unemployment were associated with rapid rises in wages, while periods of high unemployment were characterized by low growth in wages. Other economists s Ebook Macroeconomics - Policy and practice (2nd edition): Part 2oon extended his work to many other countries. Because inflation is more central to macroeconomic issues than wage growth, they estimated the relationEbook Macroeconomics - Policy and practice (2nd edition): Part 2
ship between unemployment and inflation. The negative relationship between unemployment and inflation that they found in many countries became known, Aggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul Sa Ebook Macroeconomics - Policy and practice (2nd edition): Part 2ngdom, 1861-1957," Eiwiiwrcu 25 (November 1958): 28J-299.WA'w.downloadslide.com282 PART FOUR • BUSINESS CYCLES: THE SHORT RUNThe idea behind the Phillips curve is quite intuitive. When labor markets are tighi— that is, the unemployment rate is low—firms may have difficulty hiring qualified workers a Ebook Macroeconomics - Policy and practice (2nd edition): Part 2nd may even have a hard time keeping their present employees. Because of the shortage of workers in the labor market, firms will raise wages to attracEbook Macroeconomics - Policy and practice (2nd edition): Part 2
t needed workers and raise their prices at a more rapid rate.Phillips Curve Analysis in the 1960sBecause wage inflation feeds directly into overall inAggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul Sa Ebook Macroeconomics - Policy and practice (2nd edition): Part 2ell. As shown in panel (a) of Figure 11.1's plot of the US. inflation rate against the unemployment rate from 1950 to 1969, there is a very clear negative relationship between unemployment and inflation. The Phillips curve for that period seemed to imply that there is a long-run trade-off between un Ebook Macroeconomics - Policy and practice (2nd edition): Part 2employment and inflation—that is, policy makers can choose policies that lead to a higher rate of inflationFIGURE 11.1Inflation and Unemployment in thEbook Macroeconomics - Policy and practice (2nd edition): Part 2
e United States, 1950-1969 and 1970-2013The plot of inflation against unemployment over the 1950-1969 period in panelEbook Macroeconomics - Policy and practice (2nd edition): Part 2
bert Solow published a paper outlining how policy makers could exploit the Phillips curve trade-off. The policy maker could choose between two competiAggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul Sa Ebook Macroeconomics - Policy and practice (2nd edition): Part 2deed, Samuelson and Solow even said that policy makers could achieve a "nonperfectionist" goal of a 3% unemployment rate at what they considered to be a tolerable inflation rate of 4-5% per year. This thinking was influential during the Kennedy and then Johnson administrations, and contributed to th Ebook Macroeconomics - Policy and practice (2nd edition): Part 2e adoption of policies in the mid-1960s to stimulate the economy and bring the unemployment rate down to low levels. At first these policies seemed toEbook Macroeconomics - Policy and practice (2nd edition): Part 2
be successful because the subsequent higher inflation rates were accompanied by a fall in the unemployment rate. However, tire good times were not toAggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul SaAggregate Supply and the Phillips CurvePreviewIn the 1960s, the Kennedy and Johnson administrations followed the advice of Nobel Prize winners Paul SaGọi ngay
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