Macroeconomics

‭AD-AS‬ ‭model:‬ ‭AD,‬‭SRAS,‬‭and‬‭LRAS‬‭intersect‬ ‭at‬‭point‬‭Y.‬‭Here,‬‭actual‬‭output‬‭(Y₁)‬‭=‬‭potential‬ ‭output (Y‬ ‭f‬ ‭).‬

‭PPC:‬ ‭The‬‭economy‬‭is‬‭operating‬‭at‬‭point‬‭Y‬‭or‬ ‭any‬ ‭other‬ ‭point‬ ‭on‬ ‭the‬ ‭curve‬ ‭indicating‬ ‭full‬ ‭employment of resources.‬

‭Phillips‬ ‭curve‬ ‭model:‬ ‭SRPC‬ ‭intersects‬ ‭with‬ ‭LRPC‬‭at‬‭NRU‬‭at‬‭point‬‭Y.‬‭Here,‬‭actual‬ ‭unemployment‬ ‭(UR)‬ ‭=‬ ‭natural‬ ‭rate‬ ‭of‬ ‭unemployment‬ ‭(NRU)‬‭and‬‭actual‬‭inflation‬ ‭rate = expected inflation rate.‬

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