当前位置:首页 >> 其它课程 >> 1

1


The Short-Run Tradeoff between Inflation and Unemployment
Copyright ? 2004 South-Western

35

Unemployment and Inflation
? The natural rate of unemployment depe

nds on various features of the labor market. ? Examples include minimum-wage laws, the market power of unions, the role of efficiency wages, and the effectiveness of job search. ? The inflation rate depends primarily on growth in the quantity of money, controlled by the Fed.
Copyright ? 2004 South-Western

Unemployment and Inflation
? Society faces a short-run tradeoff between unemployment and inflation. ? If policymakers expand aggregate demand, they can lower unemployment, but only at the cost of higher inflation.
? If they contract aggregate demand, they can lower inflation, but at the cost of temporarily higher unemployment.
Copyright ? 2004 South-Western

THE PHILLIPS CURVE
? The Phillips curve illustrates the short-run relationship between inflation and unemployment.

Copyright ? 2004 South-Western

The Phillips Curve

Inflation Rate (percent per year) 6 B

2

A Phillips curve

0

4

7

Unemployment Rate (percent)
Copyright ? 2004 South-Western

The Phillips Curve and AS-AD

(a) The Model of Aggregate Demand and Aggregate Supply Price Level Short-run aggregate supply Inflation Rate (percent per year) 6

(b) The Phillips Curve

106 102 A

B

B

High aggregate demand Low aggregate demand 0 7,500 8,000 (unemployment (unemployment is 7%) is 4%)

A

2
Phillips curve 0 4 (output is 8,000)

Quantity of Output

Unemployment 7 (output is Rate (percent) 7,500)

Copyright ? 2004 South-Western

Short-Run Phillips Curve
? The Phillips curve seems to offer policymakers a menu of possible inflation and unemployment outcomes.
? But…

Copyright ? 2004 South-Western

The Long-Run Phillips Curve ? In the 1960s, Friedman and Phelps concluded that inflation and unemployment are unrelated in the long run.
? As a result, the long-run Phillips curve is vertical at the natural rate of unemployment. ? Monetary policy could be effective in the short run but not in the long run.
Copyright ? 2004 South-Western

The Long-Run Phillips Curve

Inflation Rate

Long-run Phillips curve
B

1. When the Fed increases the growth rate of the money supply, the rate of inflation increases . . .

High inflation

Low inflation

A

2. . . . but unemployment remains at its natural rate in the long run.

0

Natural rate of unemployment

Unemployment Rate

Copyright ? 2004 South-Western

The Phillips Curve and AS-AD

(a) The Model of Aggregate Demand and Aggregate Supply Price Level Long-run aggregate supply 1. An increase in the money supply increases aggregate B demand . . . A AD2 Aggregate demand, AD 0 Natural rate of output Inflation Rate

(b) The Phillips Curve Long-run Phillips curve 3. . . . and increases the inflation rate . . . B

P2 2. . . . raises the price P level . . .

A

Quantity of Output

0

Natural rate of unemployment

Unemployment Rate

4. . . . but leaves output and unemployment at their natural rates.

Copyright ? 2004 South-Western

Expectations and the SRPC ? Expected inflation measures how much people expect the overall price level to change.

Copyright ? 2004 South-Western

Expectations and the SRPC ? In the long run, expected inflation adjusts to changes in actual inflation. ? The Fed’s ability to create unexpected inflation exists only in the short run.
? Once people anticipate inflation, the only way to get unemployment below the natural rate is for actual inflation to be above the anticipated rate.
Copyright ? 2004 South-Western

Expectations and the SRPC

Unemployment Rate =
Expected Natural rate of unemployment - a Actual ? inflation inflation

?

?

Copyright ? 2004 South-Western

How Expected Inflation Shifts the SRPC
2. . . . but in the long run, expected inflation rises, and the short-run Phillips curve shifts to the right. Long-run Phillips curve

Inflation Rate

B

C Short-run Phillips curve with high expected inflation A Short-run Phillips curve with low expected inflation Unemployment Rate
Copyright ? 2004 South-Western

1. Expansionary policy moves the economy up along the short-run Phillips curve . . .
0

Natural rate of unemployment


更多相关文档:

锋克松说明书完整版[1]..

如无毒副方应,第二日开始剂量增加 0.25-0.50mg/kg/日, 剂量逐日递增至维持剂量:1-3mg/kg/日。输液浓度以不大于 0.15mg/ml 为宜。中枢神经系统 感染,最...

大学物理_上海交通大学_第四版-下册课后题全部答案[1]

大学物理_上海交通大学_第四版-下册课后题全部答案[1]_理学_高等教育_教育专区。习题 11 11-1.直角三角形 ABC 的 ?9 ?9 A 点上,有电荷 q1 ? 1.8 ? ...

仪器分析课后题答案 (1)

4.用控制电位库仑分析法测定 CCl4 和 CHCl3 的含量,当电位为-1.0V(vs.SCE)时,甲 醇溶液中的四氯化碳在汞阴极上还原成氯仿: + 2CCl4+2H +2e +2Hg —...

材料力学答案第三版单辉祖(1)

FN2 ? 2 Fsinθ及 (a) 3( FN1 ? FN2 ) ? 2Fcosθ联立求解方程(a)与(b),得 (b) tanθ ? 由此得 FN1 ? FN2 (16 ? 8) ?103 ? ? 0.1925...

模拟试卷二(答案) (1)

? , x?0 ?0 2 求(1)E (X1+X2), E(2 X1 ? 3 X 2 (2)又设 X1,X2 相互独立,求 E (X1X2) ); 解: (1) E( X 1 ? X 2 ) ? E( ...

材科基试卷 (1)

材科基试卷 (1)_研究生入学考试_高等教育_教育专区。华中科技大学材料科学与工程学院试卷(A) (闭卷) 考试科目: 班级: 材料科学基础 材料 1101,1102,1103 2013...

Word高级练习-1

Word高级练习-1_高等教育_教育专区。第 1 章大熊猫 1.1 起源进化 ... 11 章大熊猫 1.1 起源进化 ......

高中数学选修1-1知识点归纳

高中数学选修1-1知识点归纳_数学_高中教育_教育专区。高中数学选修 1-1 知识点总结 第章 简单逻辑用语 1、命题:用语言、符号或式子表达的,可以判断真假的陈述...

数字电路与逻辑设计试卷 (1)

填空题 (每空 1 分,共 15 分) 1 [19]10=[ 11010 ]Gray (假设字长为 5bit) 2 若 X=+1010, 则[X]原= ( 00001010 ), [-X]补= ( 11110110...

思想道德修养与法律基础复习2答案_1

思想道德修养与法律基础复习、单项选择题:每题 11.坚定的信念是实现理想的( C ) A.根本 B.基础 C.重要条件 D.绝对条件 2.勇于实践、艰苦奋斗是实现...
更多相关标签:
2 | 163 | 12306 | 12 | 1号店 | 11 | 19 | 3 |
网站地图

文档资料共享网 nexoncn.com copyright ©right 2010-2020。
文档资料共享网内容来自网络,如有侵犯请联系客服。email:zhit325@126.com