⑥ hh pptteerr 1100 :

Aggregate demand . SUPPLY → +

éngamgcai

* in short run ,
GDP flatmates around it trend .

•
Recession :
periods of falling real incomes and
rising unemployment
↳

Depression
suyihoai
severe recession ( rare )
> business cycle
very
•
:

Khiengkhoang 4 ( short -

run economic fluctuation )

booming being nÉ thunhcipaia economy tañgmanh : :

Did facts irregular & unpredictable :

most macroeconomic quantities fluctuate together

as output fall ,
unemployment rises

D Classical economics
Real
classical
dichotomy quantities relative prices
•
-
:
,

nominal measured terms

: in
of money
affect nominal but real
•

neutrality of money
:
changes in the
money supply not variables

P most economists believe

Depp ) SRAS supply )
-

( CPI , price →
C Short -
run Aggregate
level
classical
theory
the
describes
the world in
long run , not

short run

ngañhqn changes
'
-9
- -

trong short
- - - -

w c- .
in run in
,
'

xuhg dai han ! nominal variables ( like the

1 AD ( Aggregate demand ) money supply or P) can affect
i.
real variables ( like Y or the
y urate )

A ☐ ( (/ ✓ ✓ @
c-
Real GDP ,

1 the
quantity of output

shows the
quantity all
goes demanded in the at given price level f AD C G NX )
economy
of
= + I + +

1 the wealth Effect Cpandc )

a) Effects suppose P rises

Pngnichbiin . . .
☒ the dollars pp hold buy fewer g&s so real wealth is lower
no
people feel poorer
Result : ( falls
the interest rate ( Pandi )
2
effect
-

D
Suppose P rises

dollars
n•
.

Buying gds requires more

Pz - . - - .
-
- • ☐• To
get these dollars people sells bond or other assets
tjgia
,

: • This drives up interest rate

gear ^
! Result héttiénkhoiotaietri
sit
mais "
u
:
: I falls
→ I depends negatively on interest rate
p, - - .
-
i - i
-
-
. . . .

,
3 the
exchange -

rate effect CP and NX )

; i

! :
AD Suppose Prises :

I ( the effect)
'
. ☐• U.s interest rate rise interest -

rate
Y desire bonds
foreign investors 4. S
> • more
Yzeañtañgegaii Y,
Higher demand $ exchange market
•
for in
foreign
• U.S exchange rate appreciates
• U.s exports more expensive to people abroad , imports cheaper to U.S residents
Result : NX
falls

b)
Summary
An increase in P reduces the
quantity of goes demanded because :

• the weath effect ( ( falls)

PL :c c ←
. - - -
- .

f) I - . - . -
-
i
i
'
' -
'
' l -
•
the interest rate effect CI falls )
l Y
l l

i ÷
I 1
AD .
the exchange -
rate effect CN ✗
falls)
! !
Y
Yz Yi