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 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


相关文章:
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 ? ...
资源与环境系统分析作业(1)
资源与环境系统分析作业(1)_自然科学_专业资料。资环系统分析实验作业资源与环境系统分析实验(第篇) 1.八个学生在学习不同周数后,在一次考试中取得如下表所示...
通信原理期末考试试题及答案 (1)
通信原理期末考试试题及答案 、填空题(总分 24,共 12 小题,每空 1 分) 1、数字通信系统的有效性用 传输频带利用率 衡量,可靠性用 差错率 衡量。 2、...
诗歌朗诵背景音乐配乐大全[1]1
诗歌朗诵背景音乐配乐大全[1]1_其它考试_资格考试/认证_教育专区。爱国主义民歌供大家观赏 诗歌朗诵背景音乐配乐大全 歌颂祖国类 1 共和国之恋 2 我像雪花天上...
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 —...
区域地理世界地理亚洲练习[1]
亚洲练习、选择题 读下图,回答 1—3 题: 1、图中所示季节为 A、春季 B、夏季 C、秋季 D、冬季 2、上升流影响印度洋西部海域 ①大气环流以上升流为主 ...
管理会计模拟试卷(1)
管理会计模拟试卷(1)、 填空题(每题 1 分,共 16 分) 1、管理会计受 关系约束,而财务会计受 的约束。 2、成本按经济用途,可分为 和 两类;按性态可分...
(物质系数表)[1]
(BUT/1b×10 ) 5.6 7.1 12.3 11.2 12.6 2.5 20.7 9.4 6.4 8.9 10.9 11.8 9.5 7.6 13.7 13.7 15.4 5.9 9.7 16 [2] 8 12.4[7]...
数学实验答案-1
数学实验答案-1_理学_高等教育_教育专区。 1.(1) [1 2 3 4;0 2 -1 1;1 -1 2 5;]+(1/2).*([2 1 4 10;0 -1 2 0;0 2 3 -2]) 2....
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( ...
更多相关标签:
2 | 163 | 12306 | 12 | 1号店 | 11 | 19 | 3 |