Questions tagged [aggregate-supply]
The aggregate-supply tag has no usage guidance.
12
questions
0
votes
0
answers
7
views
two real gdp at the same price level in ad as model
in a macro book of arnold i see an agg demand-supply model where it seems above the equilibrium price level there are two real gdp for the same price level. the book then goes on to explain that there ...
- 1
0
votes
0
answers
8
views
does the income-output-expenditure method of getting real gdp hold in ad as model
in the ad as model, it seems there's two different real gdp for a given price level when in disequilibrium. does this mean the real gdp counted from the demand side is not equal to the real gdp ...
- 1
0
votes
0
answers
4
views
difference between quantity of real gdp demanded and quantity of real gdp supplied and real gdp
I can't seem to understand why the agg demand curve and agg supply curve both have real gdp at the horizontal axis and price level at the vertical axis. How can the relation between two same ...
- 1
0
votes
0
answers
19
views
What would be the theoretical outcome of expansionary fiscal policy... on the business cycle?
Hello all,
So, I came across this question on my economics final. It immediately struck me as odd. It's asking what effect expansionary fiscal policy would have in the Aggregate Demand - Aggregate ...
2
votes
0
answers
36
views
What about the opposite of stagflation
Mankiw says that a left shift in AS leads to higher inflation and unemployment and a higher expected inflation level, which shifts AS even more left and does this continuously. I was wondering though, ...
- 21
2
votes
1
answer
21
views
Why does a positive output gap shift the short run AS curve instead the demand curve?
I'm reading through Mishkin "The Economics of Money, Banking, and Financial Markets". In chapter 23 (of the global 13th edition), they introduce the AS/AD framework. What confuses me is the ...
- 23
3
votes
0
answers
29
views
Is there alternative to the monetary tighetning when the inflation is caused by scarcity (supply-side shocks)?
Current economic crisis is created by sharp reducing shocks to the supply side - bad economic weather, political restrictions to the trade, service availability reduction in the transportation sector. ...
- 425
8
votes
3
answers
255
views
Aggregation of the closure property of a production set
Consider an economy with finitely many goods $I$ and factors $F$. For each good $i$, let $Y_i \subset \mathbb R^I \times \mathbb R^F_{\geq 0}$ denote a production set for $i$. Assume each $Y_i$ has ...
- 121
1
vote
1
answer
37
views
From the aggregate supply equation to the definition of inflation rate
By definition the inflation rate is $$\pi=\dfrac{P-P_{-1}}{P_{-1}}\cdot100\%$$ or could be defined in terms of the consumer price index CPI, but in this case I think the former is the one to consider....
- 205
5
votes
1
answer
104
views
Deriving aggregate output from labor demand and supply
I was reading the following paper:
http://eml.berkeley.edu//~moretti/growth.pdf
I got stuck at equation (7)
The firm's production function is $Y_{i}=A_{i}L_{i}^{\alpha}K_{i}^{\eta}T_{i}^{1-\alpha-\eta}...
- 165
1
vote
0
answers
28
views
PPC's real output value
Does every point on the PPC have the same real output value? If not, then what point on the PPC does the long-run aggregate supply represent? LRAS is supposed to be vertical on the real GDP if the ...
2
votes
1
answer
207
views
The new Keynesian IS curve: What determines output?
The New Keynesian IS curve can be described by the following (log-linearisation around the steady-state):$$y_t=E_t(y_{t+1})- \frac{1}{\theta}(i_t - E_t\pi_{t+1}-\rho)$$
where $\displaystyle\frac{1}{\...
- 5,051