Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
Find more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2to grow and unemployment rises.Bill why do recessions occur? And how do economies recover from ttiese recessions?In a sense, recessions arc massive failures in economic coordinalion. For example, during the Creal Depression in lhe 1930s. nearly one-iourlh OÍ the U.S. labor force was unemployed. Unem Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2ployed workers could not afford to buy goods and services. I actorics That manufactured those goods and services had lo be shut down because there wasEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
little or no demand. As lltese factories closed, even more workers became unemployed, fueling additional factory shutdowns. I his viciouscyclo causedFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2ery sleep downturn—although not nearly as severe as lire Great Depression. How could the destructive cltain of events Itave been hailed?I qually important is how economics can recover from recessions. I he U.S. economy was very slow to recover from the Great IXoprcssson and did not tnjly reach full Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2employment until World War II. And. despite active government intervention. lite recovery from the 2007 recession was also painfully slow.LEARNING OBJEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
ECTIVES^•Explain the role sticky wages and prices play in economic fluctuations.•List the determinants of aggregate demand.•Distinguish between the shFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2ive and study more efficiently..185Find more at http //www.downloadslide comCHAPTER 9 • AGGREGATE DEMAND AND AGGREGATE SUPPLY186conoinics do not always operate at full employment, nor do they' always grow smoothly. Ar times, real GDP grows below its potential or tails steeply, as it did in the Great Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2 Depression. Recessions and excess unemployment occur when real GDP falls. At other limes, GDP grows too rapidly, and unemployment falls below its natEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
ural rate.“Too slow" or “too fast" real GDP growth arc examples OẾ’ economicfluctuations— movements of GDP away from potential output. We now turn ourFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2rdination. Factories would have produced more output and hired more workers if there had been more demand for their products. In his 1936 book, The General Theory of Employment. Interest, and Money, British economist John Maynard Keynes explained that insufficient demand for goods and services was a Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2 key' problem of rhe Great Depression. Following rhe publication of Keynes's work, economists began to distinguish between real GDP in rhe long run, wEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
hen prices have time to hilly adjust to changes in demand, and real GDP in the short run, when prices don't yet have lime to fully adjust to changes iFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2rn ro filll employment, although economic policy may assist it in gelling there more quickly.In rhe previous two chapters, we analyzed the economy ar full employment and studied economic growth. Those chapters provided the framework for analyzing rhe behavior of the economy in the long run. but not Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2in the short run, when there can be sharp fluctuations in output. Wc therefore need to develop an additional set of tools to analyze both short- and lEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
ong run changes and the relalionsliip between the two.9.1Sticky Prices and Their Macroeconomic ConsequencesWhy do recessions occur" We previously discFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2shocks to technology cause economic fluctuations. Now we examine another approach to understanding economic fluctuations.Led by Keynes, many economists have focused attention on economic coordination problems. Normally, the price system efficiently coordinates what goes on in an economy—even in a co Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2mplex economy. The price system provides signals to firms as to who buys what, how much to produce, what resources to use, and from whom to buy. For eEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
xample, if consumers decide to buy' fresh fruit rather thanchocolate, rhe price of fresh fruit will rise and rhe price of chocolate will fall. More frFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2round, marching the desires ol consumers with the output from producers.Flexible and Sticky PricesBur the price system docs not always work instantaneously. If prices arc slow to adjust, then they do not give the proper signals to producers and consumers quickly enough to bring them together. Demand Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2s and supplies will not be brought immediately into equilibrium, and coordination can break down. In modern economics, some prices are very flexible,Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
whereas others are not. In the 1970s, U.S. economist Arthur Okun distinguished between auction prices, prices that adjust on a nearly’ daily basis, anFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2are very flexible and adjust rapidly. Prices for industrial commodities, such as Steel rods or machine tools, are custom prices and tend to adjust slowly to changes in demand. As shorthand, economists often refer to slowly’ adjusting prices as “sticky prices" (just like a door that won't open immedi Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2ately but sometimes gets stuck).Find more at http //www.downloadslide comSteel rods and machine tools arc input prices. Like other input prices, the pEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
rice of labor also adjusts very slowly. Workers often have long-term contracts that do not allow employers to change wages at all during a given year.Find more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2y. As a general rule, there are very few workers in the economy whose wages change quickly. Perhaps movie stars, athletes, and rockstars are the exceptions, because their wages rise and fall with their popularity. But they are far from the typical worker in the economy. Even unskilled, low-wage work Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2ers are often protected from a decrease in their wages by minimum-wage laws.For most linns, the biggest cost ol doing business is wages. It wages areEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
sticky, linns' overall costs will be sticky as well. Illis means that firms' product prices will remain sticky, too. Stick}’ wages cause sticky pricesFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2rms that supply intermediate goods such as Steel rods or other inputs let demand not price determine the level of output in the short run. To understand this idea, consider an automobile firm that buys material from a steelmaker on a regular basis. Because the auto linn and the Steel producer have b Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2een in business with one another for a long lime and have an ongoing relationship, they have negotiated a contract that keeps Steel prices fixed in rhEbook Macroeconomics - Principles, applications, and tools (8th edition): Part 2
e short run.But suppose the automobile company’s cars suddenly become very popular. The firm needs to expand production, so it needs more Steel. UnderFind more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails t Ebook Macroeconomics - Principles, applications, and tools (8th edition): Part 2omobile company. As a result, the production of Steel is totally determined in the short run by rhe demand from automobile producers, not by price.Find more at http://www.download8We.comAggregate Demand and Aggregate SupplyAs we explained in previous chapters, recessions occur when output fails tGọi ngay
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