Transcript Document 9653377

Matakuliah
Tahun
: J0594-Teori Ekonomi
: 2009
THE AGGREGATE DEMAND AND
AGGREGATE SUPPLY
Pertemuan 8
AD – AS Model
• Aggregate Demand-Aggregate Supply Model
(AD-AS Model)
• Aggregate Demand
• Why the Downward Slope?
– Real-Balances Effect
– Interest-Rate Effect
– Foreign Purchases Effect
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Agregate Demand
Price Level
Aggregate Demand Curve
Aggregate
Demand
AD
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Real Domestic Output, GDP
Changes in Aggregate Demand
• Determinants of Aggregate Demand and
Multiplier Effect
• Changes in:
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–
–
–
–
–
–
Consumer Spending
Consumer Wealth
Consumer Expectations
Household Debt
Personal Taxes
Investment Spending
Real Interest Rates
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Changes in Aggregate Demand
– Expected Returns
•
•
•
•
About Future Business Conditions
Technology
Degree of Excess Capacity
Business Taxes
– Government Spending
– Net Export Spending
– National Income Abroad
• Exchange Rates
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Changes in Aggregate Demand
Price Level
Increase in
Aggregate
Demand
Decrease in
Aggregate
Demand
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AD2
AD1
AD3
Real Domestic Output, GDP
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Aggregate Supply
Aggregate Supply in the Long Run
Price Level
ASLR
Long Run
Aggregate
Supply
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Real Domestic Output, GDP
Aggregate Supply
Aggregate Supply in the Short Run
Price Level
Per-Unit
=
Production Cost
Total Input Cost
Units of Output
Aggregate Supply
(Short Run)
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Real Domestic Output, GDP
Changes in Aggregate Supply
• Determinants of Aggregate Supply
• Changes in:
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–
–
–
–
–
–
–
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Input Prices
Domestic Resource Prices
Prices of Imported Resources
Market Power
Productivity
Legal-Institutional Environment
Business Taxes and Subsidies
Government Regulation
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Changes in Aggregate Supply
Changes in Aggregate Demand Curve
Price Level
AS3
AS1
Decrease in
Aggregate
Supply
AS2
Increase in
Aggregate
Supply
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Real Domestic Output, GDP
Equilibrium and Changes in Equilibrium
Tabular View…
Real Output
Demanded
(Billions)
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Price Level
(Index Number)
Real Output
Supplied
(Billions)
$506
108
$513
508
104
512
510
100
510
512
96
507
514
92
502
Equilibrium Price Level and Equilibrium Price Level
12
Equilibrium and Changes in Equilibrium
Price Level
AS
Equilibrium
100
92
AD
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510 514
Real Domestic Output, GDP
(Billions of Dollars)
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Equilibrium and Changes in Equilibrium
Increase in Aggregate Demand
Price Level
AS
Demand-Pull
Inflation
P2
P1
AD1
AD
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Qf
Q1 Q2
Real Domestic Output, GDP
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