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Equilibrium - Asset Managment - Lecture Slides, Slides of Management Fundamentals

Mizoram UniversityManagement Fundamentals

Asset Management is an important subject in Economics. In these Lecture Slides, following concepts are discussed : Equilibrium, Aggregate Output, Short Run Equilibrium, Long Run Equilibrium, Flatter, Shift, Economy, Little Change, Large Change, Causes of Inflation

Typology: Slides

2012/2013

Uploaded on 07/26/2013

devnarayan
devnarayan 🇮🇳

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93 documents

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Equilibrium
Price
Level
Aggregate Output, Y
P0
Y0
AS
AD
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Equilibrium

PriceLevel

Aggregate Output, Y

P^0

Y^0

AS AD

Equilibrium

PriceLevel

Aggregate Output, Y

P^0

Y^0

AS AD

short run equilibrium

Equilibrium

PriceLevel

Aggregate Output, Y

P^0

Y^0

AS AD

LRAS

short run equilibrium

and long run equilibrium

A shift of AD when the economy is onthe flatter part of the AS curve...

Aggregate Output, Y

AS

AD^0

Y^0

P^0

AD^1

P^1

Y^1

PriceLevel

little changein price

Causes of Inflation

Inflation: An increase in the overallprice level ^ Demand pull inflation is inflationthat is initiated by an increase inaggregate demand. ^ Cost-push (supply-side) inflationis inflation caused by an increase incosts.

Demand Pull Inflation

Aggregate Output, Y

Price Level

AS

AD^1

Y^0

P^0

AD^0

Y^1

P^1

Review Terms & Concepts  Aggregate demand  Aggregate demandcurve (AD)  Aggregate supply  Aggregate supplycurve (AS)  Cost-push inflation  Supply shock  Demand-pull inflation

^ Equilibrium price level ^ Hyperinflation ^ Inflation ^ Inflationary gap ^ Potential GDP ^ Real balance effect ^ Stagflation ^ Sustained inflation