AP_Krugman_Textbook
180 section 4 National Income and Price Determination question facing a producer: is producing a unit of output profitable or no ...
fact, industry analysts often talk about variations in an industry’s “pricing power”: when demand is strong, firms with pricing ...
curve. Aggregate supply increases when producers increase the quantity of aggregate out- put they are willing to supply at any g ...
Why isn’t the influence of commodity prices already captured by the short -run aggregate sup- ply curve? Because commodities—unl ...
Consequently, the cost per unit of output rises, profit falls, and quantity supplied falls. This shifts the short -run aggregate ...
output supplied that would exist if all prices, including nominal wages, were fully flex- ible. The long -run aggregate supply c ...
rises. Indeed, one way to think about long -run economic growth is that it is the growth in the economy’s potential output. We g ...
point where both curves cross—a point where actual aggregate output is equal to po- tential output. Figure 18.5 illustrates how ...
188 section 4 National Income and Price Determination Prices and Output During the Great Depression The figure shows the actual ...
module 18 Aggregate Supply: Introduction and Determinants 189 Section 4 National Income and Price Determination Because changes ...
What you will learn in this Module: 190 section 4 National Income and Price Determination The difference between short-run and ...
We have seen that a shortage of any individual good causes its market price to rise and a surplus of the good causes its market ...
in government purchases during World War II. In 2008, the U.S. econ- omy experienced another significant negative demand shock a ...
The effects of a negative supply shock are shown in panel (a) of Figure 19.3. The initial equilibrium is at E 1 , with aggregate ...
There’s another important contrast between supply shocks and demand shocks. As we’ve seen, monetary policy and fiscal policy ena ...
module 19 Equilibrium in the Aggregate Demand–Aggregate Supply Model 195 Section 4 National Income and Price Determination U.S. ...
196 section 4 National Income and Price Determination figure 19.6 Short -Run Versus Long -Run Effects of a Positive Demand Shock ...
module 19 Equilibrium in the Aggregate Demand–Aggregate Supply Model 197 Supply Shocks Versus Demand Shocks in Practice How ofte ...
198 section 4 National Income and Price Determination Tackle the Test: Multiple-Choice Questions Which of the following causes ...
What you will learn in this Module: How the AD–ASmodel is used to formulate macroeconomic policy The rationale for stabilizatio ...
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