dec-cfa年8月31日余潤(rùn)共111圖片每頁打四個(gè)

SS5– AssignedAggregateOutput,Prices,andEconomicUnderstandingBusinessMonetaryand

17.AggregateOutput,Prices,andEconomicLOS17.a:Calculateandex ingrossdomesticproduct(GDP)usingexpenditureand eapproaches.Grossdomesticproduct(GDP)isthetotalmarketvalueofallfinalgoodsandservicesproducedwithinacountryduringacertaintimeperiod.Usingtheexpenditureapproach支出法)GDPiscalculatedasthetotalamountspentongoodsandservicesproducedinthecountryduringatimeperiod.Usingthe eapproach(收入法),GDPiscalculatedasthe eearnedbyhouseholdsandbusinessesinthecountryduringatimeperiod. 17.AggregateOutput,Prices,andEconomic

17.AggregateOutput,Prices,andEconomicLOS17.b:Comparethesum-of-value-addedandvalue-of–final-outputmethodsofcalculatingGDP.TheexpenditureapproachtomeasureGDPcanusethesum-of-value-addedmethodorthevalue-of-final-outputmethod.Sum-of-value-added(增值總和GDPiscalculatedbysummingtheadditionstovaluecreatedateachstageofproductionanddistribution.Value-of-final-output(最終產(chǎn)品價(jià)值GDPiscalculatedbysummingthevaluesofallfinalgoodsandservicesproducedduringtheperiod.317.AggregateOutput,Prices,andEconomicLOS17.c:ComparenominalandrealGDPandcalculateandinterprettheGDPdeflator.NominalGDP名義GDPvaluesgoodsandservicesattheircurrentprices.RealGDP真實(shí)GDPmeasurescurrentyearoutputusingpricesfromabaseyear.ForaneconomywithNdifferentgoodsandservices,wecanexpressnominalGDPas:

17.AggregateOutput,Prices,andEconomicAssumingthebaseyearpricesarethoseforfiveyearsago,realGDPcanbeexpressedas: 17.AggregateOutput,Prices,andEconomicTheGDPdeflatorisapriceindexthatcanbeusedtoconvertnominalGDPintorealGDP,takingouttheeffectsofchangesintheoverallpricelevel.TheGDPdeflatorisbasedontheactualmixofgoodsandservicesproducedinthebaseperiod.Per-capitarealGDP人均真實(shí)GDPisdefinedasrealGDPdividedbypopulationandisoftenusedasameasureoftheeconomicwell-beingofacountry’sresidents.

17.AggregateOutput,Prices,andEconomicExample:CalculatingandusingtheGDPGDPin2002is1.8billionat2002pricesand1.65billionwhencalculatedusing2001prices.CalculatetheGDPdeflatorusing2001asthebaseperiod.NominalGDPwas213billionin2006and150billionin2001.The2006GDPdeflatorrelativetothebaseyear2001is122.3.CalculaterealGDPfor2006andthecompoundannualrealgrowthrateofeconomicoutputfrom2001to2006. 17.AggregateOutput,Prices,andEconomicGDPdeflator=1.8/1.65×100=109.1,reflectinga9.1%increaseinthepricelevel.RealGDP2006=213/1.223=174.16.NotingthatrealandnominalGDParethesameforthebaseyear,thecompoundrealannualgrowthrateofeconomicoutputoverthe5-yearbaseperiodis

17.AggregateOutput,Prices,andEconomicLOS17.d:CompareGDP,national e,andaldisposable 174.16 150 17.AggregateOutput,Prices,andEconomicUnder eapproach,wehavethefollowingequationforGDP= e+capitalconsumptionallowance+Acapitalconsumptionallowance(CCA)measuresthedepreciation(i.e.,wear)ofphysicalcapitalfromtheproductionofgoodsandservicesoveraperiod.CCAcanbethoughtofastheamountthatwouldhavetobereinvestedtomaintaintheproductivityofphysicalcapitalfromoneperiodtothenext.Thestatisticaldiscrepancy統(tǒng)計(jì)誤差isanadjustmentforthedifferencesbetweenGDPmeasuredunderthe eapproachandtheexpenditureapproachbecausetheyusedifferentdata. 17.AggregateOutput,Prices,andEconomic e國(guó)民收入isthesumofthe ereceivedbyallfactorsofproductionthatgointothecreationoffinaloutput: e=compensationofemployees(wagesand+corporate ernmententerpriseprofitsbefore+ +unincorporatedbusiness e(business ++indirectbusinesstaxes–subsidies(taxesandsubsidiesthatareincludedinfinalprices)

17.AggregateOutput,Prices,andEconomic e個(gè)人收入isameasureofthepretax ereceivedbyhouseholdsandisonedeterminantofconsumerpurchasingpowerand e=national e+transferpaymentstohouseholds–indirectbusinesstaxes–corporate etaxes–undistributedcorporateprofitsaldisposable e(PDI)個(gè)人可支配收入is aftertaxes.PDImeasurestheamountthathouseholdshaveavailabletoeithersaveorspendongoodsandservicesandisanimportanteconomicindicatoroftheabilityofconsumerstospendandsave.al e e al 17.AggregateOutput,Prices,andEconomicLOS17.e:Ex inthefundamentalrelationshipamongsaving,investment,thefiscalbalance,andthetradebalance.Aswehaveseen,totalexpenditurecanbestatedasGDP=C+I+G+(X-M).Total e,whichmustequaltotalexpenditure,canbestatedas:Because eequalstotalexpenditures,wehavethe

17.AggregateOutput,Prices,andEconomicRearrangingthisequationandsolvingforS,wegetthefollowingfundamentalrelationship:S=I+(G-T)+(X-(G-T)isthefiscalbalanceand(X-M)isthetradebalance貿(mào)Ifwesolvethisequationforthefiscalbalance,weget:(G-T)=(S-I)–Fromthisequation,wecanseethata ernmentdeficit(G-T>0)mustbefinancedbysomecombinationofatradedeficit(X-M<0)oranaccessofprivatesavingoverprivateinvestment(S-I>0).17.AggregateOutput,Prices,andEconomicLOS17.f:Ex intheISandLMcurvesandhowtheycombinetogeneratetheaggregatedemandcurve.Toderivetheaggregatedemandcurve,weneedtounderstandthefactorsthatdetermineeachofthecomponentsofGDP:Consumptionisafunctionof e.Anincrease eoradecreaseintaxeswillincreasebothconsumptionandsaving.Additional ewillbeconsumedorInvestmentisafunctionofexpectedprofitabilityandthecostoffinancing.Expectedprofitabilitydependsontheoveralllevelofeconomicoutput.Financingcostsarereflectedinrealinterestrates.ernmentpurchasesmaybeviewedasindependentofeconomicactivitytoadegree.Netexportsareafunctionofdomesticdisposable es,foreign es,andrelativepricesofgoodsinforeignanddo21estic

17.AggregateOutput,Prices,andEconomicReturntothefundamentalrelationshipamongsaving,investment,thefiscalbalanceandthetradebalance,andsubtractingIfrombothsides,weget:(S-I)=(G-T)+(X-Aswehaveseen,eachofthe blesinthisequationisafunctionofeconomicoutput/aggregate e.Wecanrepresentthesum(G-T)+(X-M)asadecreasingfunctionof e,asin 17.AggregateOutput,Prices,andEconomic17.AggregateOutput,Prices,andEconomic

17.AggregateOutput,Prices,andEconomic eandexpenditurearetoremaininequilibrium,theremustbeaninverserelationshipbetweentherealinterestrateand e.Ineconomics,thisrelationshipiscalledtheIScurve.TheIScurveplotsthecombinationsof eandtherealinterestratesforwhichaggregateoutput(and e)equal nnedexpenditures. 17.AggregateOutput,Prices,andEconomicByexaminingtherelationshipsbetweensupplyanddemandinthefinancialmarkets,wecanderivetheLMcurve.TheLMcurveshowsthecombinationsofGDPorreal e(Y)andrealinterestrate(r)thatkeepthe tyofrealmoneydemandedequaltothe tyofreal Inequilibrium,thereisapositiverelationshipbetweenreal eandtherealinterestrateforagivenleveloftherealmoneysupply.17.AggregateOutput,Prices,andEconomic

17.AggregateOutput,Prices,andEconomic 17.AggregateOutput,Prices,andEconomicWhentheISandLMcurvesarecombined,thepointatwhichtheyintersectrepresentsthelevelsoftherealinterestrateand ethatareconsistentwithequilibriumbetween eandexpenditure(pointsalongtheIScurve)andequilibriumbetweentherealmoneysupplyandtherealinterestrate(pointsalongtheLMcurve).TheintersectionbetweentheISandLMcurvesdeterminestheequilibriumlevelsofpricesandreal e(realGDP)foragivenleveloftherealmoney

17.AggregateOutput,Prices,andEconomicTheaggregatedemandcurveshowstherelationshipbetweenthetyofrealoutputdemanded(whichequalsreal e)andthepriceTheaggregatedemandcurveslopesdownwardbecausehigherpricelevelsreducerealwealth,increaserealinterestrates,andmakedomesticallyproducedgoodsmoreexpensivecomparedtogoodsproducedabroad,allofwhichreducethe tyofdomesticoutput 17.AggregateOutput,Prices,andEconomic

17.AggregateOutput,Prices,andEconomicLOS17.g:Ex intheaggregatesupplycurveintheshortrunandlongTheaggregatesupply(AS)curvedescribestherelationshipbetweenthepricelevelandthe tyofrealGDP d,whenallotherfactorsarekeptconstant.Thatis,itrepresentstheamountofoutputthatfirmswillproduceatdifferentpricelevels.Therearethreeaggregatesupplycurveswithdifferenttimeframes:theveryshort-runaggregatesupply(V )curve,theshort-runaggregatesupply )curve,andthelong-runaggregatesupply ) 17.AggregateOutput,Prices,andEconomic?Intheveryshortrun,wages,inputcostsandpricesarefixed.Then curveisperfectly?Allpricescanvaryinthelongrun,and curveisperfectlyinelastic.Inthiscase,thepricelevelhasnolong-runeffectonaggregatesupply.WerefertothislevelofoutputaspotentialGDPorfull-employmentGDP.

17.AggregateOutput,Prices,andEconomicIntheshortrun,outputpriceswillchangeproportionallytothelevelbutatleastsomeinputpricesare“sticky”,meaningthattheydonotadjusttochangesinthepricelevelintheshortrun.Theresultisanupwardslo 17.AggregateOutput,Prices,andEconomicLOS17.h:Describethecausesofshiftsinandmovementsalongaggregatedemandandsupplycurves.AnumberoffactorscanaffectthislevelofexpendituresandcauseADcurveto?Increaseinconsumers’?Business?Consumerexpectationsof ?Highcapacity?Expansionary?Expansionary?Exchange?GlobaleconomicNotethatforeachfactor,achangeintheoppositedirectionwillte3dtodecreaseaggregatedemand.

17.AggregateOutput,Prices,andEconomicAnumberoffactorscanaffectthislevelofexpendituresandcausecurvetoLaborInputExpectationsoffutureoutputTaxes ernmentExchangeNotethatforeachfactor,achangeintheoppositedirectionwilltendto 17.AggregateOutput,Prices,andEconomicChangesinfactorsthataffecttherealoutputthataneconomycanproduceatfullemploymentwillshiftthe curve.Factorsthatwillshiftthe curveare:IncreaseinthesupplyandqualityofIncreaseinthesupplyofnaturalIncreaseinthestockofphysicalForeachfactor,achangeintheoppositedirectionwilltendto.Technologydoesnotreallyretreat,butalawprohibitingtheuseofanimprovedtechnologycoulddecrease

17.AggregateOutput,Prices,andEconomicMovementAlongAggregateDemandandSupplyIncontrastwithshiftsintheaggregatedemandandaggregatesupplycurves,movementsalongthesecurvesreflecttheimpactofachangeinthepricelevelonthe tydemandedandthe ChangesinthepricelevelalonedonotcauseshiftsintheADandAScurves,althoughwehaveallowedthatchangesinexpectedfutureprices 17.AggregateOutput,Prices,andEconomicLOS17.i:Describehowfluctuationsinaggregatedemandandaggregatesupplycauseshort-runchangesintheeconomyandthebusinesscycle.Nowweexaminemacroeconomicequilibriumintheshortandlongrun.InFigure8,weillustratelong-runequilibriumattheintersectionof curveandtheaggregatedemandcurve.?ArecessionarygapoccurswhenrealGDPislessthanpotentialrealGDP,causingdownwardpressureoninputprices.?AninflationarygapoccurswhenrealGDPisgreaterthanpotentialrealGDP,causingupwardpressureoninputprices.

17.AggregateOutput,Prices,andEconomic 17.AggregateOutput,Prices,andEconomicLOS17.j:Ex inhowashortrunmacroeconomicequilibriummayoccuratalevelaboveorbelowfullemployment.Wewillnowextendthis ysistoincludeshiftsinshort-runaggregatesupplythatarepartoftheprocessofmovingtowardthelong-runequilibriumoutputandpricelevel.Iftheeconomyisinshort-runequilibrium,butalevelofoutputaboveorbelowfull-employmentGDP,itisinlong-rundisequilibrium.

17.AggregateOutput,Prices,andEconomicLOS17.k: yzetheeffectofcombinedchangesinaggregatesupplyanddemandontheeconomy.Considertheshort-runandlong-runadjustmenttoanincreaseinaggregatedemandillustratedinFigure10.17.AggregateOutput,Prices,andEconomicInFigure11,weillustratehowadecreaseinaggregatedemandAD0toAD1willleadtoanewshort-runequilibriumwiththepricelevelatPSRandrealGDPatGDP1

17.AggregateOutput,Prices,andEconomicImplications Aninvestorexpectingadecreaseinaggregatedemandthatwillresultinarecessionarygapshould:?Increaseinvestmentindefensivecompaniesanddecreaseinvestmentincyclicalcompanies.?Increaseinvestmentininvestment-gradeand ernmentfixed securitiesanddecreaseinvestmentinlower-qualityfixed ?Increaseinvestmentinlong-maturity e?DecreaseinvestmentincommoditiesandcompaniesthatproduceAninvestorexpectinganincreaseinaggregatedemandthat resultinaninflationarygapshouldtakeopposite 17.AggregateOutput,Prices,andEconomicStagflation滯Stagflationreferstoanenvironmentofbothhighunemploymentandincreasinginflation,usuallyassociatedwithasharpdecreaseinaggregatedsupply.Thecauseofsuchadecreaseisoftenasuddenunexpectedincreaseinthepriceofoneormoreimportantproductiveinputs.AdeclineinaggregatesupplyisrepresentedinFigure12.Aninvestoranticipatingstagflation?Decreaseinvestmentinfixed ?Decreaseinvestmentin?Increaseinvestmentrelatedto

17.AggregateOutput,Prices,andEconomic 17.AggregateOutput,Prices,andEconomicLOS17.l:Describethesources,measurement,andsustainabilityofeconomicgrowth.Economicgrowthcanbestbeex inedbyexaminingfiveimportantsourcesofeconomicgrowth:?Labor?Human?Physicalcapital?Natural

17.AggregateOutput,Prices,andEconomicOnewaytoviewpotentialGDPiswiththefollowingPotentialGDP=aggregatehoursworked×laborOr,statedintermsofeconomicGrowthinpotentialGDP=growthinlabor +growthinlaborThesustainablerateofeconomicgrowthisimportantbecauselong-termequityreturnsarehighlydependentoneconomicgrowthovertime. 17.AggregateOutput,Prices,andEconomicLOS17.m:Describetheproductionfunctionapproachto yzingthesourcesofeconomicgrowth.Aproductionfunctiondescribestherelationshipbetweenoutputandlabor,thecapitalstock,andproductivity.Y=AwhereY=aggregateeconomicoutput,L=sizeoflabor ,K=amountofcapitalavailable,A=totalfactorproductivity.

17.AggregateOutput,Prices,andEconomicTotalfactorproductivity全要素生產(chǎn)率isamultiplierthat theamountofoutputgrowththatcannotbeex inedbytheincreasesinlaborandcapital.Theproductionfunctioncanbestatedonaper-workerbasisbydividingbyL:Therelationshipsuggeststhatlaborproductivitycanbeincreasedbyeitherimprovingtechnologyorincreasingphysicalcapitalperworker.Diminishingmarginalproductivity邊際生產(chǎn)率遞減YAf(K 17.AggregateOutput,Prices,andEconomicLOS17.n:Distinguishbetweeninputgrowthandgrowthoftotalfactorproductivityascomponentsofeconomicgrowth.Awell-knownmodelofthecontributionsoftechnology,labor,andcapitaltoeconomicgrowthis

17.AggregateOutput,Prices,andEconomicGrowthintotalfactorproductivityisdrivenbyimprovementsintechnology.Sometimes,therelationshipbetweenpotentialGDP,technologyimprovements,andcapitalgrowthiswrittenonaper-capitabasisas:

growthin

growthin

arelabor’spercentageshareof ecapital’spercentageshareof 18.UnderstandingBusinessLOS18.a:Describethebusinesscycleanditsphases.Thebusinesscyclehasfourphase:Expansion:RealGDPisPeak:RealGDPstopsincreasingandbeginsContraction:RealGDPisTrough:RealGDPstopsdecreasingandbeginsExpansionsfeatureincreasingoutput,employment,consumption,investment,andinflation.Contractionsarecharacterizedbydecreasesintheseindicators.Businesscyclesarerecurring,butdonotoccuratregularintervals,candifferinstrengthorseverity,anddonotpersistforspecificleng5t5hsoftime.

18.UnderstandingBusinessLOS18.a:Describethebusinesscycleandits 18.UnderstandingBusinessLOS18.b:Ex inthetypicalpatternsofresourceusefluctuation,housingsectoractivity,andexternaltradesectoractivity,asaneconomymovesthroughthebusinesscycle.Inventorytosalesratiostypicallyincreaselateinexpansionswhensalesslowandincreaseneartheendofcontractionswhensalesbegintoaccelerate.Firmsdecreaseorincreaseproductiontorestoretheirinventory-saleratiostotheirdesiredlevels.

18.UnderstandingBusinessBecausehiringandlayingoffemployeeshavehighcosts,firmsprefertoadjusttheirutilizationofcurrentemployees.Asaresult,firmsareslowtolayoffemployeesearlyincontractionsandslowtoaddemployeesearlyinexpansions.Firmsusetheirphysicalcapital使用實(shí)物資本moreintensivelyduringexpansions,investinginnewcapacityonlyiftheybelievetheexpansionislikelytocontinue.Theyusephysicalcapitallessintensivelyduringcontractions,buttheyaremorelikelytoreducecapacitybydeferringmaintenanceandnotre cingequipmentthanbysellingtheirphysicalcapital. 18.UnderstandingBusinessHousingSectormortgagehousingcostsrelativeto speculativeactivitydemographicfactorsExternalTradeSectorThemostimportantfactorsdeterminingthelevelofacountry'simportsandexportsaredomesticGDPgrowth,GDPgrowthoftradingpartners,andcurrencyexchangerates.

18.UnderstandingBusinessTypicalbusinesscycleGDPgrowthratechangesfromnegativetoHighunemploymentrate,increasinguseofovertimeandtemporarySpendingonconsumerdurablegoodsandhousingmayModerateordecreasinginflationGDPgrowthrateUnemploymentratedecreasesashiringInvestmentincreasesinproducers'equipmentandhomeInflationratemayImportsincreaseas egrowth

18.UnderstandingBusiness

18.UnderstandingBusinessLOS18.c:DescribetheoriesofthebusinessGDPgrowthrateUnemploymentratedecreasesbuthiringConsumerspendingandbusinessinvestmentgrowatslowerInflationrateGDPgrowthrateisHoursworkeddecrease,unemploymentrateConsumerspending,homeconstruction,andbusinessinvestmentInflationratedecreaseswithaImportsdecreaseas egrowth

Neoclassicaleconomistsbelievebusinesscyclesaretemporaryanddrivenbychangesintechnology,andthatrapidadjustmentsofwagesandotherinputpricescausetheeconomytomovetofull-employmentequilibrium.Keynesianeconomists believeexcessiveoptimismorpessimismamongbusinessmanagerscausesbusinesscyclesandthatcontractionscanpersistbecausewagesareslowtomovedownward.NewKeynesians新 believeinputpricesotherthanwagesarealsoslowtomovedownward. 18.UnderstandingBusinessMonetaristsbelieveinappropriatechangesintherateofmoneysupplygrowthcausebusinesscycles,andthatmoneysupplygrowthshouldbemaintainedatamoderateandpredictableratetosupportthegrowthofrealGDP.Austrian-schooleconomists奧地利學(xué)派believebusinesscyclesareinitiatedby ernmentinterventionthatdrivesinterestratestoartificiallylowlevels.NewClassicalschooleconomistintroducedRealbusinesscycletheoryholdsthatbusinesscyclescanbe inedbyutility- izingactorsrespondingtorealeconomicssuchasexternalshocksandchangesintechnology,andthatmakersshouldnotinterveneinbusinesscycles.

18.UnderstandingBusinessLOS18.d:DescribetypesofunemploymentandmeasuresofFrictionalunemploymentresultsfromthetimeittakesforemployerslookingtofilljobsandemployeesseekingthosejobstofindeachother.Structuralunemploymentresultsfromlong-termeconomicchangesthatrequireworkerstolearnnewskillstofillavailablejobs.Cyclicalunemploymentispositive(negative)whentheeconomyisproducingless(more)thanitspotentialrealGDP. 18.UnderstandingBusiness isconsideredunemployedifheisnotworking,isavailableforwork,andisactivelyseekingwork.Thelabor includesallpeoplewhoareeitheremployedorunemployed.?Theunemploymentrateisthepercentageoflaborparticipantswhoareunemployed.?Theparticipationratioisthepercentageoftheworking-agepopulationwhoareeitheremployedoractivelyseekingemployment.

18.UnderstandingBusinessLOS18.e: ininflation,hyperinflation,disinflation,andInflationisapersistentincreaseinthepricelevelovertimeAninflationrateisapercentageincreaseinthepricelevelfromoneperiodtothenext.Inflationthatacceleratesoutofcontrolisreferredtoashyperinflation惡性通貨膨脹,whichcandestroyacountry’smonetarysystemandbringaboutsocialandpoliticalDisinflationisadecreaseintheinflationrateoverDeflationreferstoapersistentdecreaseinthepricelevel(i.e.,anegativeinflationrate).18.UnderstandingBusinessLOS18.f: intheconstructionofindicesusedtomeasureApriceindexmeasuresthecostofaspecificbasketofgoodsandservicesrelativetoitscostinaprior(base)period.TheinflationrateismostoftencalculatedastheannualpercentagechangeinapriceThemostwidelyfollowedpriceindexistheconsumerpriceindex(CPI)消費(fèi)者價(jià)格指數(shù),whichisbasedonthepurchasingpatternsofatypicalhousehold.TheGDPdeflatorandtheproducerorwholesalepriceindexarealsousedasmeasuresofinflation.Headlineinflation中心通漲isapercentagechangeinapriceindexforallgoods.Coreinflation 通漲iscalculatedbyexcludingfoodandenergypricesfromapriceindexbecauseoftheirhigh 18.UnderstandingBusinessExample:CalculatingapriceThefollowingtableshowspriceinformationforasimplifiedbasket

18.UnderstandingBusiness

Referencebaseperiod:Cheeseburgers200×2.5=Movietickets50 300×1.5= 100×12=1200Costofbasket

CurrentCheeseburgers200 Movietickets50 300 100×9 Costof Calculatethechangeinthepriceindexforthisbasketfromthebaseperiodtothecurrentperiod.

PriceThepriceindexisup116/110-1=16%overthe18.UnderstandingBusinessLOS18.g:Compareinflationmeasures,includingtheirusesand

18.UnderstandingBusinessExample:Paasche

ALaspeyrespriceindexisbasedonthecostofaspecificbasketofgoodsandservicesthatrepresentsactualconsumptioninabaseperiod.Newgoods,qualityimprovements,andconsumers’substitutionoflower-pricedgoodsforhigher-pricedgoodsovertimecauseaLaspeyresindextobebiasedupward.L通漲指數(shù)用基期APaaschepriceindexusescurrentconsumptionweightsforthebasketofgoodsandservicesforbothperiodsandtherebyreducessubstitutionbias.P通漲指數(shù)用當(dāng)期的量AFisherpriceindexisthegeometricmeanofaLaspeyresandaPaascheindex.F通漲指數(shù)將L通漲指數(shù)和P73

Continuingtheexamplewepresentedearlier,assumethebasketofgoodshaschangedasfollows:CalculateaPaascheindexforthecurrentperiod,compareittotheLaspeyresindex(previouslycalculatedas116),andex inthe

18.UnderstandingBusiness

18.UnderstandingBusinessLOS18.h:Distinguishbetweencost-pushanddemand-pullReferencebaseperiod:Cheeseburgers205×2.5=512.5Movie 45×7 295×1.5= 105×12=1260Costofbasket

Current 205Movie 45×10 295 105×9=945Costof

Cost-pushinflationresultsfromadecreaseinaggregatesupplycausedbyanincreaseintherealpriceofanimportantfactorofproduction,suchaslabororenergy.PaascheThePaascheindexislessthan116because,comparedtothebaseperiod,consumershavesubstitutedawayfromthetwogoodswiththelargestpercentagepriceincreases(gasolineandmovietickets).18.UnderstandingBusinessDemand-pullinflationresultsfrompersistentincreasethepricelevelandtemporarilyincreaseeconomicoutputaboveitspotentialorfull-

UnderstandingBusinessLOS18.i:Describeeconomicindicators,includingtheirusesand

employment

Economicindicatorscanbeclassifiedintothreecategories:leadingindicators,co indicators,andlaggingindicators.Leadingindicatorshaveturningpointsthattendtoprecedethoseofthebusinesscycle. indicatorshaveturningpointsthattendtocoincidewiththoseofthebusinesscycle.Laggingindicatorshaveturningpointsthattendtooccurafterthoseofthebusinesscycle.Alimitationofusingeconomicindicatorstopredictbusinesscyclesisthattheirrelationshipswiththebusinesscycleareinexactandcanvary over 18.UnderstandingBusinessLOS18.j:Identifythepast,current,orexpectedfuturebusinesscyclephaseofaneconomybasedoneconomicindicators.

18.UnderstandingBusiness19.MonetaryandLOS19.a:Comparemonetaryand referstoa ernment’suseofspendingandtaxationtoinfluenceeconomicactivity.Thebudgetissaidtobebalanced,surplusor

19.MonetaryandLOS19.b:DescribefunctionsanddefinitionsofMoneyservesasamediumofexchangeormeans

deficitwhentaxrevenuesequal,exceedorarelessthan referstothecentralbank’sactionsthataffectthetyofmoneyandcreditinaneconomyinordertoinfluenceeconomicactivity.Monetary issaidtobeexpansionary(contractionary)whenthecentralbankincreases(decreases)the ofmoneyandcreditinaneconomy.Bothmonetaryandfiscalpoliciesareusedby makerswiththegoalsofmaintainingstablepricesandproducingpositiveeconomic

paymentbecauseitisacceptedaspaymentforgoodsandMoneyalsoservesasaunitofaccountbecausepricesofallgoodsandservicesareexpressedinunitsofmoney:dollars,yen,rupees,pesos,andsoforth.Thisallowsustodeterminehowmuchofanygoodweareforegoingwhenconsuminganother.Moneyprovidesastoreofvaluebecausemoneyreceivedforworkorgoodsnowcanbesavedtopurchasegoods 19.MonetaryandNarrowmoneyistheamountofnotes(currency)andcoinsincirculationinaneconomyplusbalancesincheckablebankBroadmoneyincludesnarrowmoneyplusanyamountavailableinliquidassets,whichcanbeusedtomakepurchase.M1=Currencyinthehandsofthepublic+travelerschecks

19.MonetaryandLOS19.c: inthemoneycreationInafractionalreservesystem,newmoneycreatedisamultipleofnewexcessreservesavailableforlendingbybanks.Thepotentialmultiplierisequaltothereciprocalofthereserverequirementand,therefore,isinverselyrelatedtothereservedemanddeposits+otherdepositsagainstwhichcheckscanbeM2=M1+savingaccounts+timedepositsunder$100,000+balancesinretailmoneymarketmutualfunds

money

19.Monetaryand

19.Monetaryand

tyTheoryof tytheoryofmoneystatesthat tyofmoneyissomeproportionofthetotalspendinginaneconomyandimpliesthetyequationof

LOS19.d:DescribetheoriesofthedemandforthesupplyofmoneyThreefactorsinfluencemoneydemand:

outut

）

Transactiondemand,forbuyinggoodsandPrecautionarydemand,tomeetunforeseenfuturePricemultipliedbyrealoutputistotalspendingsothatvelocityistheaveragenumberoftimesperyeareachunitofmoneyisusedtobuygoodsandservices.Thebeliefthatrealvariables(realGDPandvelocity)arenotaffectedbymonetaryvariables(moneysupplyanddemand)isreferredtoasmoneyneutrality.

Speculativedemand,totakeadvantageofinvestmentMoneysupplyisdeterminedbycentralbankswiththegoalofmanaginginflationandothereconomicobjectives. 19.Monetaryand 19.Monetaryand 19.MonetaryandLOS19.eDescribetheFishereffectTheFishereffectstatesthatanominalinterestrateisequaltotherealinterestrateplustheexpectedinflationrate.

19.MonetaryandLOS19.f:DescribetherolesandobjectivesofcentralCentralbankroles

RRe

EI

rof ern