II. UNIT II

1. II. UNIT II . . C. Aggregate Demand and Aggregate Supply 1. Equilibrium real GDP and price level with stationary AD and AS 2. The depiction of cyclical unemployment, demand-pull Inflation, and supply-side inflation 3. Aggregate demand stabilization policies

2. EQUILIBRIUM REAL GDP AND PRICE LEVEL SHORT RUN

3. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

4. AS WHAT'S TRUE IN EQUILIBRIUM? PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

5. AS WHAT'S TRUE IN EQUILIBRIUM? PRICE PRICE LEVEL WHERE LEVEL AGGREGATE QUANTITY SUPPLIED EQUALS AGGREGATE QUANTITY DEMANDED EQ. PRICE LEVEL AD EQ. GDP REAL GDP

6. AS WHAT'S TRUE IN EQUILIBRIUM? PRICE LEVEL PRICE LEVEL WHERE AGGREGATE QUANTITY SUPPLIED EQUALS AGGREGATE QUANTITY DEMANDED EQ. PRICE LEVEL WE WILL END UP THERE AD EQ. GDP REAL GDP

7. AS NOTHING INHERENTLY GOOD PRICE OR BAD ABOUT THE LEVEL EQUILIBRIUM IT'S SIMPLY WHERE EQ. WE WILL END UP PRICE LEVEL AD EQ. GDP REAL GDP

8. PRICE LEVEL AD REAL GDP

9. PRICE LEVEL AGGREGATE AD REAL GDP

10. AS PRICE LEVEL REAL GDP

11. AGGREGATE AS PRICE LEVEL REAL GDP

12. AS PRICE LEVEL REAL GDP

13. DETERMINANTS OF SUPPLY FIRST FIVE DETERMINE PRODUCTION COSTS PRODUCTION COST UP----SUPPLY DECREASES, ETC. 1. resource prices 2. technology and/or productivity 3. taxes and subsidies 4. price of other goods (particularly price of production alternatives) 5. expectations (sellers' expectations about future prices) ************************ 6. number of sellers

14. AS PRICE LEVEL REAL GDP

15. AS PRODUCTION COSTS PRICE UP LEVEL REAL GDP

16. AS PRICE LEVEL REAL GDP

17. AS PRICE LEVEL REAL GDP

18. AS PRODUCTION COSTS PRICE DOWN LEVEL REAL GDP

19. AS PRICE LEVEL REAL GDP

20. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

21. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

22. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

23. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. REAL REAL GDP GDP

24. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

25. AS PRICE LEVEL PRICE LEVEL AD REAL GDP

26. AS PRICE LEVEL PRICE LEVEL AD GDP GDP REAL PRODUCED DEMANDED GDP

27. AS PRICE LEVEL EQ. PRICE LEVEL AD EQ. GDP REAL GDP

28. AS PRICE LEVEL PRICE LEVEL AD GDP GDP REAL DEMANDED PRODUCED GDP