当前位置:首页 >> 其它课程 >>

1


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

35

Unemployment and Inflation
? The natural rate of unemployment depends 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


相关文章:
遗传推理题的解题方法(1)
遗传推理题的解题方法、解题的基本方法 1. 解法 1——已知表现型求基因型是最基本的题型 (1)从子代开始,从隐性纯合体开始。 (2)表现型为隐性性状的个体,...
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( ...
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...
嵌入式复习思考题(1)答案
复位 未定义指令 软件中断 指令预取中止 数据中止 普通中断 快速中断 0x00000000 0x00000004 0x00000008 0x0000000C 0x00000010 0x00000018 0x0000001C 1 6 6 5 2...
GM(1,1)模型及其Matlab实现
灰色系统预测 GM(1,1)模型及其 Matlab 实现三天三夜 72 小时: 读懂题目-》查找文献资料-》选择题目-》重查找文献资料-》 精读其中几篇-》查找资料的资料。。...
实变函数第一章复习题及解答(1)
若 A ? B ,则 A ? B ,反之亦然。 √)( 15、若 A ? A ? A2 , B ? B1 ? B2 ,且 A1 ? B1 , A2 ? B2 ,则 A ? B 。(×) 1 16、若...
阅读(1)
82 页 1、 Communication between people from different countries has become increasingly easy thanks to modern communication technologies such as telephone, e-...
传热学第五版课后习题答案(1)
1-5 厚度δ 为 0.1m 的无限大平壁,其材料的导热系数λ =100W/(m·K),在给定的直角坐标系中,分 别画出稳态导热时如下两种情形的温度分布并分析 x 方向...
综合训练解答-1
地址表设备 ISP CENTRAL 接口 Fa0/0 S0/0/0 S0/0/0 Fa0/0.1 BRANCH Fa0/0.10 Fa0/0.20 Fa0/0.30 Fa0/0.99 S1 S2 S3 PC1 PC2 PC3 Web ...
SOPC复习资料_1
IP 硬核是基于半导体工艺的物理设计,已有固定的拓扑布局和具体工艺,并已经过工艺验证,具有可保证的性能 基于嵌入 IP 硬核的 SOPC 系统有以下的缺点: 1. 器件价格...
更多相关标签: