ECON 1115 Lecture Notes - Lecture 20: Aggregate Demand, Janet Yellen, Aggregate Supply
27 Oct 2015
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Econ 1115 - lecture 20 market news and concepts review. Students were asked to read and understand latest wall street journal news. Discussion points: market is down today, fed strives for a clear signal on interest rates : The professor discussed in the class some aggregate supply concepts. Problem : what relationship does the aggregate supply curve show: the aggregate supply curve shows the relationship between the price level and the quantity of goods and services supplied in an economy. Problem : what is the equation for the aggregate supply curve in the short run: the equation for the aggregate supply curve in the short run is y = y natural + a(p p expected). In the short run, both the price level and output decrease as the new aggregate demand curve meets the short-run aggregate supply curve at a new intersection that is to the lower left of the old intersection.
