萨尔瓦多国际经济学(第十版)英文课件ch19

1、Tenth EditionPrices and Output in an Open Economy: Aggregate Demand and Aggregate SupplyDominick SalvatoreJohn Wiley & Sons, Inc.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.CHAPTER N I N E T E E NIn this chapter:nIntroductionnAggregate Demand, Aggregate Suppl

2、y, and Equilibrium in a Closed EconomynAggregate Demand in an Open Economy under Fixed and Flexible Exchange RatesnEffect of Economic Shocks and Macroeconomic Policies on Aggregate Demand in Open Economies with Flexible PricesSalvatore: International Economics, 10th Edition 2010 John Wiley & Son

3、s, Inc.In this chapter:nEffect of Fiscal and Monetary Policies in Open Economies with Flexible PricesnMacroeconomic Policies to Stimulate Growth and Adjust to Supply ShocksSalvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.IntroductionnIn the real world, prices rise and

4、 fall as the economy expands and contracts during business cycles.nIn this chapter, we relax the assumption of constant prices and examine the relationship between price and output in an open economy.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Aggregate Demand, A

5、ggregate Supply, and Equilibrium in a Closed EconomynAggregate demand (AD) shows the relationship between total quantity demanded of goods and services and the general price level, holding the money supply, government spending and taxes constant.nAggregate supply (AS) shows the relationship between

6、total quantity supplied of goods and services and the general price level.nThis relationship depends on time horizon, so there are long-run and short-run aggregate supply curves.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-1 Derivation of the AD Curve fr

7、om the IS-LM Curves.sSalvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Aggregate Demand, Aggregate Supply, and Equilibrium in a Closed EconomynLong-run aggregate supply (LRAS) does not depend on prices, but on quantity of labor, capital, natural resources and technolog

8、y.nThe quantity of inputs available to an economy determines the natural level of output (YN) in the long run.nLRAS is vertical at YN when plotted against price.nShort-run aggregate supply (LRAS) does depend on prices, sloping upward because of imperfect information and market imperfections.Salvator

9、e: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-2 The Long-Run and Short-Run Aggregate Supply Curves.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-3 Equilibrium in a Closed Economy.Salvatore: International Economics, 10t

10、h Edition 2010 John Wiley & Sons, Inc.FIGURE 19-4 Short-Run Output Deviations from the Natural Level in the United States.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Aggregate Demand in an Open Economy under Fixed and Flexible Exchange RatesnOpening an econom

11、y to trade primarily affects aggregate demand in short and medium run.nUnder fixed exchange rates:nThe aggregate demand curve is more elastic than for the closed economy.nThe more responsive exports and imports are to the change in domestic prices, the more elastic aggregate demand will be relative

12、to the closed economy.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-5 Derivation of a Nations Aggregate Demand Curve Under Fixed Exchange Rates.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Aggregate Demand in an Open Ec

13、onomy under Fixed and Flexible Exchange RatesnUnder flexible exchange rates:nThe aggregate demand curve is more elastic than for the closed economy and for the open economy with fixed exchange rates.nWith flexible exchange rates, instead of the money supply increasing when prices increase, the curre

14、ncy will appreciate, bringing nation back into equilibrium.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-6 Derivation of the Nations Aggregate Demand Curve Under Flexible Exchange Rates.Salvatore: International Economics, 10th Edition 2010 John Wiley &

15、; Sons, Inc.Effect of Economic Shocks and Macroeconomic Policies on Aggregate Demand in Open Economies with Flexible PricesnSuppose there is an increase in exports and/or reduction in imports with unchanged domestic prices.nUnder fixed exchange rates, a balance of payments surplus will lead to an in

16、crease in aggregate demand.nUnder flexible exchange rates, the potential balance of payments surplus will appreciate the nations currency, correcting trade balance. Aggregate demand does not change.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-7 Changes i

17、n the Nations Trade Balance and Aggregate Demand.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-8 Short-Term Capital Flows and Aggregate Demand.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Effect of Economic Shocks and M

18、acroeconomic Policies on Aggregate Demand in Open Economies with Flexible PricesnSummarynAny shock that affects the real sector of the economy affects aggregate demand under fixed exchange rates, but not flexible exchange rates.nAny monetary shock affects aggregate demand under both fixed and flexib

19、le exchange rates but in opposite directions.nFiscal policy is effective under fixed exchange rates but not under flexible exchange rates. The opposite is true for monetary policy.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Effect of Fiscal and Monetary Policies

20、in Open Economies with Flexible PricesnUnder fixed exchange rates and highly elastic short-term international capital flows, fiscal policy is effective, but monetary policy is not.nUnder flexible exchange rates, monetary policy is effective, but fiscal policy is not.Salvatore: International Economic

21、s, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-9 Expansionary Fiscal Policy from the Natural Level of Output and Recession Under Fixed Exchange Rates.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-10 Index of Central Bank Independence and Averag

22、e Inflation.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Macroeconomic Policies to Stimulate Growth and Adjustment to Supply ShocksnThough fiscal and monetary policies are used primarily to affect aggregate demand, they can also be used to stimulate long-run econo

23、mic growth.nIf successful in the long run, growth policies can lead to:nIncreased employmentnHigher incomesnLower pricesnAn appreciated currencySalvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.FIGURE 19-11 Macroeconomic Policies for Long-Run Growth.Salvatore: International Economics, 10th Edition 2010 John Wiley & Sons, Inc.Macroeconomic