Macro15

2. Macroeconomics
Lecture 15
Business Fluctuations
Aggregate Supply & Demand
Chapter 13

3. Questions?

4. Review
Exam 2

5. Exam 3
Chapters 13-18
March 29th

6. Chapter 13
Business Fluctuations
Aggregate Supply &
Demand

7. Real GDP Growth Rate
3.2%

8. Civilian Unemployment Rate
3.2%

9. Aggregate Demand
Aggregate Supply
Model
AD-AS Model

10. Mv = PYR
Rates
M + v = P +YR

11. M + v = P +YR
M + v = Inflation + Real Growth
5% + 0% = Inflation + 0%

12. 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-2% 0% 2% 4% 6%
Aggregate Demand
AD = M +V = 5%P
Inflation
Rate
Y - Real GDP Growth Rate
5% = P +Y
AD = 7%

13. 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-2% 0% 2% 4% 6%
Aggregate Demand
P
Inflation
Rate
Y - Real GDP Growth Rate