This document provides a summary of a term paper presentation on long run aggregate supply curves, long run aggregate demand curves, and inflation growth. The presentation was given by R.V. Aditya Kumar, Atul Kumar Prasad, Raghvendra Kumar, K. Ashrita, and Harika. It discusses how the long run aggregate supply curve depends on factors of production and technology, and how the aggregate demand curve can shift from growth in the money supply. It also explains the quantity theory of money and some points about how inflation and economic growth are related, including how the Reserve Bank of India uses tools like cash reserve ratios and statutory liquidity ratios to control inflation.

1. TERM PAPER PRESENTATION
ON
1)LONGRUN AGGREGATE SUPPLY CURVE
2)LONG RUN AGGREGATE DEMAND CURVE
3)INFLATION GROWTH
PRESENTED BY-
R.V. ADITYA KUMAR(131204)
ATUL KUMAR PRASAD(131205)
RAGHVENDRA KUMAR(131206)
K.ASHRITHA(131251)
HARIKA(131250) 1

2. LONG RUN AGGREGATE SUPPLY CURVE
 It doesn’t depends on price.
 It depends on factors of production-
1. Natural resource
2. Marginal efficiency of capital
3. Labor productivity
4. Technology superiority.
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3. LONG RUN AGGREGATE SUPPLY CURVE
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4. IN THE LONG RUN-
1. Technology progress reflects to the right, the
aggregate supply curve.
2. The growth in money supply shifts aggregate
demand.
3. Leading to growth in output
4. Ongoing inflation.
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5. LONG RUN AGGREGATE DEMAND CURVE
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6. QUANTITY THEORY OF MONEY
MV=PY
 M = money supply, V = velocity of money, P = price
level, Y = real GDP
 Assumptions: V is constant
 Money has no effect on real variables (so ΔM has
no effect on Y)
 Y is entirely determined by the fixed stock of labor,
capital and technology
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7. SOME POINTS ON INFLATION AND GROWTH
 Inflation doesn’t affects us when growth of income
is more then inflation.
 Inflation is good because it attracts investment.
 Some time to control inflation we have to control
growth.
 Various tool having RBI to control inflation-
1. CRR
2. SLR
3. TAX and REVENUES.
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8. Thank you…
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