曼昆宏观经济第11章.pptVIP

* The next few slides put our IS-LM-AD in the context of the bigger picture - the AD-AS model in the short-run and long-run, which was introduced in Chapter 9. * Abbreviation: SR = short run, LR = long run The analysis that begins on this slide continues on the following slides. * * * * A good thing to do: Go back through this experiment again, and see if your students can figure out what is happening to the other endogenous variables (C, I, u) in the short run and long run. This exercise has two objectives: 1. To give students immediate reinforcement of the preceding concepts. 2. To show them that money is neutral in the long run, just like in chapter 4. You might have your students try other exercises using this framework: * the short-run and long-run effects of expansionary fiscal policy. Have them compare the long-run results in this framework with the results they obtained when doing the same experiment in Chapter 3 (the loanable funds model). * Immediately after a negative shock pushes output below its natural rate, show how monetary or fiscal policy can be used to restore full-employment immediately (i.e., without waiting for prices to adjust). * This chart presents data from Table 11-2 on pp.326-327 of the text. For data sources, see notes accompanying that table. Things to note: 1. The magnitude of the fall in output and increase in unemployment. In 1933, the unemployment rate is over 25%!! 2. There’s a very strong negative correlation between output and unemployment. * * In item 2, I’m using the term “correction” in the stock market sense. * * * * The textbook (starting p.330) uses an “extended” IS-LM model, which includes both the nominal interest rate (measured on the vertical axis) and the real interest rate (which equals the nominal rate less expected inflation). Because money demand depends on the nominal rate, which is measured on the vertical axis, the change in expected inflation doesn’t shift the LM curve. Howeve