EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC...
-
Upload
jesse-mosley -
Category
Documents
-
view
217 -
download
0
Transcript of EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC...
![Page 1: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/1.jpg)
EFLATIONARY GAP EFLATIONARY GAP
M.POURHOSSEINI M.POURHOSSEINI
![Page 2: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/2.jpg)
MACROECONOMIC BACKGROUNDMACROECONOMIC BACKGROUND
• IN THIS TUTORIAL IN THIS TUTORIAL WE REVIEW SOME WE REVIEW SOME BASIC BASIC MACROECONOMIC MACROECONOMIC AGGREGATES AGGREGATES
• The purpose is to The purpose is to provide the students provide the students whose first degree is whose first degree is not economics with not economics with some basic tools some basic tools
• The tutorial will focus The tutorial will focus on deflationary gap, on deflationary gap,
and accelerator and accelerator principle principle
![Page 3: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/3.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• The deflationary gap
– withdrawals and injections approach
• The deflationary gap
– withdrawals and injections approach
![Page 4: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/4.jpg)
The deflationary gapThe deflationary gap
OY
W
W, J
J
Ye
![Page 5: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/5.jpg)
OY
W
W, J
J
YeYF
The deflationary gapThe deflationary gap
![Page 6: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/6.jpg)
OY
W
W, J
J
YeYF
Deflationary gap
c
d
The deflationary gapThe deflationary gap
![Page 7: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/7.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
![Page 8: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/8.jpg)
OY
W, J, E
YeYF
Y
E
The deflationary gapThe deflationary gap
![Page 9: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/9.jpg)
OYYe
YF
Y
Ea
b
Deflationary gap
W, J, EThe deflationary gapThe deflationary gap
![Page 10: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/10.jpg)
OY
W
J
YeYF
c
d
Y
Ea
b
Deflationary gap
W, J, EThe deflationary gapThe deflationary gap
![Page 11: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/11.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The inflationary gap
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The inflationary gap
![Page 12: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/12.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The inflationary gap
– withdrawals and injections approach
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The inflationary gap
– withdrawals and injections approach
![Page 13: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/13.jpg)
The inflationary gapThe inflationary gap
OY
W
W, J
Ye
J
![Page 14: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/14.jpg)
OY
W
W, J
YeYF
J
The inflationary gapThe inflationary gap
![Page 15: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/15.jpg)
OY
W
W, J
YeYF
g
h
Inflationary gap
J
The inflationary gapThe inflationary gap
![Page 16: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/16.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The inflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The deflationary gap
– withdrawals and injections approach
– income and expenditure approach
• The inflationary gap
– withdrawals and injections approach
– income and expenditure approach
![Page 17: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/17.jpg)
OYYe
YF
YE
W, J, EThe inflationary gapThe inflationary gap
![Page 18: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/18.jpg)
OYYe
YF
YE
Inflationary gap
e
f
W, J, EThe inflationary gapThe inflationary gap
![Page 19: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/19.jpg)
OYYe
YF
YE
Inflationary gap
e
f
W
Jg
h
W, J, EThe inflationary gapThe inflationary gap
![Page 20: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/20.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• Inflation and unemployment at the same time
– inflationary pressures before the full-employment level of income
– implications for shape of AS curve
• Inflation and unemployment at the same time
– inflationary pressures before the full-employment level of income
– implications for shape of AS curve
![Page 21: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/21.jpg)
Unemployment and inflationUnemployment and inflation
OY
Pri
ce le
vel
YF
AS1
![Page 22: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/22.jpg)
OY
AS1
Pri
ce le
vel
YF
AS2
Unemployment and inflationUnemployment and inflation
![Page 23: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/23.jpg)
UNEMPLOYMENT AND INFLATION IN THE UNEMPLOYMENT AND INFLATION IN THE SIMPLE KEYNESIAN MODELSIMPLE KEYNESIAN MODEL
• Inflation and unemployment at the same time
– inflationary pressures before the full-employment level of income
– implications for shape of AS curve
– relationship between 45° line diagram and the AD & AS diagram
• Inflation and unemployment at the same time
– inflationary pressures before the full-employment level of income
– implications for shape of AS curve
– relationship between 45° line diagram and the AD & AS diagram
![Page 24: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/24.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
AD1
![Page 25: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/25.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
P1
Y1
AD1
![Page 26: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/26.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
P1
Y
AD1
E1
Y1
![Page 27: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/27.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
AD1
P1
Y
AD2
E1
Y1
![Page 28: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/28.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
AD1
P1
Y
AD2
E1
E2
Y1 Y2
![Page 29: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/29.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
AD1
P1
Y1
Y
E1
AD2
E2
Y2
P2
![Page 30: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/30.jpg)
Allowing for inflation in the 45Allowing for inflation in the 45 line and AD / AS diagrams
P
Cd, W, J, E
Y
Y
AS
AD1
P1
Y1
Y
E1
AD2
E2
Y2
E3
Y3
P2
![Page 31: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/31.jpg)
KEYNESIAN ANALYSIS OFKEYNESIAN ANALYSIS OFTHE BUSINESS CYCLETHE BUSINESS CYCLE
• The accelerator
– changes in national income and induced investment
• The accelerator
– changes in national income and induced investment
![Page 32: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/32.jpg)
The accelerator effectThe accelerator effect
![Page 33: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/33.jpg)
KEYNESIAN ANALYSIS OFKEYNESIAN ANALYSIS OFTHE BUSINESS CYCLETHE BUSINESS CYCLE
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
![Page 34: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/34.jpg)
KEYNESIAN ANALYSIS OFKEYNESIAN ANALYSIS OFTHE BUSINESS CYCLETHE BUSINESS CYCLE
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
– the instability of investment
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
– the instability of investment
![Page 35: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/35.jpg)
-14
-12
-10-8
-6
-4
-2
0
24
6
8
10
12
1416
18
20
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
GD
P, I
nves
tmen
t (%
ann
ual c
hang
e)Fluctuations in real GDP and investment: 1978-99Fluctuations in real GDP and investment: 1978-99
![Page 36: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/36.jpg)
-14
-12
-10-8
-6
-4
-2
0
24
6
8
10
12
1416
18
20
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
GD
P, I
nves
tmen
t (%
ann
ual c
hang
e)Fluctuations in real GDP and investment: 1978-99Fluctuations in real GDP and investment: 1978-99
GDP
![Page 37: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/37.jpg)
-14
-12
-10-8
-6
-4
-2
0
24
6
8
10
12
1416
18
20
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
GD
P, I
nves
tmen
t (%
ann
ual c
hang
e)Fluctuations in real GDP and investment: 1978-99Fluctuations in real GDP and investment: 1978-99
GDP
Investment
![Page 38: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/38.jpg)
KEYNESIAN ANALYSIS OFKEYNESIAN ANALYSIS OFTHE BUSINESS CYCLETHE BUSINESS CYCLE
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
– the instability of investment
• The multiplier / accelerator interaction
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
– the instability of investment
• The multiplier / accelerator interaction
![Page 39: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/39.jpg)
KEYNESIAN ANALYSIS OFKEYNESIAN ANALYSIS OFTHE BUSINESS CYCLETHE BUSINESS CYCLE
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
– the instability of investment
• The multiplier / accelerator interaction
• Fluctuations in stocks
• The accelerator
– changes in national income and induced investment
– the accelerator coefficient
– the instability of investment
• The multiplier / accelerator interaction
• Fluctuations in stocks
![Page 40: EFLATIONARY GAP M.POURHOSSEINI. MACROECONOMIC BACKGROUND IN THIS TUTORIAL WE REVIEW SOME BASIC MACROECONOMIC AGGREGATESIN THIS TUTORIAL WE REVIEW SOME.](https://reader030.fdocuments.in/reader030/viewer/2022032612/56649ef25503460f94c04848/html5/thumbnails/40.jpg)
KEYNESIAN ANALYSIS OFKEYNESIAN ANALYSIS OFTHE BUSINESS CYCLETHE BUSINESS CYCLE
• Analysing the phases of the business cycle
– causes of the upturn
– causes of the expansion
– causes of the peaking out
– causes of the recession
• Conclusions
– why do booms and recessions persist?
– why do booms and recessions come to an end?
• Analysing the phases of the business cycle
– causes of the upturn
– causes of the expansion
– causes of the peaking out
– causes of the recession
• Conclusions
– why do booms and recessions persist?
– why do booms and recessions come to an end?