Monetary and Fiscal Policy Effects on the Economy

Slides:

Advertisements

Similar presentations

Graphs in order to survive Mr. Forrest’s class

Advertisements

Equilibrium By J.A. SACCO.

Long-run equilibrium LRAS (long- run aggregate supply) is at a level of output that corresponds to equilibrium in labor market.

Chapter 9: Introduction to Economic Fluctuations.

Ch. 7: Aggregate Demand and Supply

AP Economics Mr. Bernstein Module 31: Money Policy and the Interest Rate March 3, 2015.

Ch. 11: Aggregate Supply and Demand

Ch. 10: Aggregate Supply and Demand  Derive AS/AD model  Understand cause & consequences of change in AS/AD Short run vs Long run Effects on economic.

 Gov. can affect AD through G or T  Directly: increase or decrease G, AD shifts  Indirectly: increase or decrease T and C and I will change, which.

Chapter 13 Part One What is it?

AP Economics Mr. Bernstein Macro Graphs Review May 2014.

Government Policies to Address… Macro – Unit 5 – part 2 and.

© 2008 Pearson Education Canada23.1 Chapter 23 Monetary and Fiscal Policy in the ISLM Model.

Monetary Policy and the Interest Rate Controlling the Supply of Money.

CHAPTER 27 Aggregate Supply and Aggregate Demand PowerPoint® Slides by Can Erbil © 2005 Worth Publishers, all rights reserved.

Monetary Policy. Purpose Monetary policy attempts to establish a stable environment so the economy achieves high levels of output and employment. How.

CHAPTER 15 MONETARY POLICY Monetary Policy, Real GDP, and the Price Level.

Mr. Bernstein Macro Graphs Review April 2015

Monetary Policy. Draw a correctly labeled graph of the Money Market. What happens to equilibrium interest rate if the Fed buys bonds from the public?

Ch. 10: Aggregate Supply and Demand  Derive AS/AD model  Understand cause & consequences of change in AS/AD Short run vs Long run Effects on economic.

Money Demand Money demand (demand for real balances) is influenced : positively by income.

Money, Output, and Prices in the Long Run. Short-Run and Long-Run Effects of an Increase in the Money Supply Short-Run and Long-Run Effects of an Increase.

ECN 200: Introduction to Economics Nusrat Jahan Lecture-10 ECN 200: Introduction to Economics Nusrat Jahan Lecture-10 Fiscal Policy and Monetary Policy.

AP Economics Mr. Bernstein Module 32: Money, Output and Prices in the Long Run March 16, 2015.

Module Money, Output, and Prices in the Long Run

Fiscal Policy Fiscal Policy - Government effort to control the economy and maintain stable prices, full employment, and economic growth. Fiscal Policy.

Relationship between GDP and Unemployment… Now lets add PL changes… This is the Aggregate Model.

Monetary Policy and the Interest Rate. Fed Goals ● Fed Goals: Economic growth and price stability (inflation control) ● When the Fed wants to lower interest.

Macroeconomic Equilibrium

The Influence of Monetary and Fiscal Policy on Aggregate Demand

In-Class Final Exam Review

Money, Output and Prices in the Long Run

Money Policy and the Interest Rate

Ch. 10: Aggregate Supply and Demand

Monetary and Fiscal Policy in the ISLM Model

Unit 3: Aggregate Demand and Supply and Fiscal Policy

AP Macroeconomics Final Exam Review.

ECO 11 Introduction to Macroeconomics

Simple Keynesian Model

THE AGGREGATE DEMAND/ AGGREGATE SUPPLY MODEL

Mr. Bernstein Macro Graphs Review May 2017

Aggregate Demand and Aggregate Supply

Ch. 10: Aggregate Supply and Demand

The Classical Theory of Inflation

Economic Stabilization Policy

Demand for Money.

Ch. 11: Aggregate Supply and Demand

Module Economic Growth in Macroeconomic Models

Module Economic Growth in Macroeconomic Models

Module Economic Growth in Macroeconomic Models

Models in AP Economics Sally Meek 1.

The Role of Money and Credit

Economic Growth in Macroeconomic Models

Ch.15, Macroeconomics, R.A. Arnold

MCT #3—Thur., Apr. 5th & Fri., Apr. 6th/FRQs #6 & #7—Mon., Apr. 9th

45o P E E (r2) E (r1) AD Y Y RLMS1 r RLMS2 r IRE RLMD M/P IRE E2 P1 E1

Module Money, Output, and Prices in the Long Run

The Aggregate Economy LRAS Price Level AS PL1 AD Q1 FE RGDP.

Module Money, Output, and Prices in the Long Run

Module Economic Growth in Macroeconomic Models

FIGURE 14.1 Change in the Price Level and the Effect on the Money Market

Chapter 11- Aggregate Demand/Aggregate Supply

The Aggregate Economy LRAS Price Level AS PL1 AD Q1 FE RGDP.

Chapter 9: Introduction to Economic Fluctuations

Equilibrium By J.A. SACCO.

Aggregate Supply & Demand Model

Module Money, Output, and Prices in the Long Run

The Aggregate Economy LRAS Price Level AS PL1 AD Q1 FE RGDP.

Presentation transcript:

Monetary and Fiscal Policy Effects on the Economy AP Macroeconomics Mrs. Shackett

White boards 2 AS/AD diagrams in LR equilibrium 1 AD , 1 AS 

Monetary and fiscal policy goals Employment Stable prices Economic growth MP and FP shift AD. Ask how a shift in AS could lead to desired outcomes. Draw AS/AD, shift AS right. Monetary and fiscal policy goals

Supply-side policies Policies that improve productivity technological advance Policies that improve productivity Supply-side policies

labor and energy Policies that decrease the price of economy-wide inputs Supply-side policies

Policies that increase quantity or quality of resources Supply-side policies

Expansionary Monetary Policy Aggregate S & D Money Market Investment rGDP Quantity of money Quantity of investment PL Nom. Int. rate Real Interest rate Expansionary Monetary Policy

handout, questions 1-4

2010 #1

Now, handout, questions 5-7