2005APR03/TO 252

RE: THIS WEEK IN 252 /252N12 SPRING 2005

6:00-6:30 QUESTION AND ANSWER

6:30-7:30 THIRD EXAMINATION CH 12-13-14-15

PHILLIPS CURVE CH 16

SUPPLY SIDE PERSPECTIVE CH 16

AGGREGATE DEMAND/AGGREGATE SUPPLY REVIEW

 
REVIEW AGGREGATE DEMAND
 EFFECT OF RISING AGGREGATE DEMAND
  NO AGGREGATE SUPPLY CHANGE
  TEXT OVERSTATES EFFECTS IN THE JOBS MARKET
  CAPACITY LIMITATIONS/GRADUAL EFFECTS
 
 THERE IS NO CASE OF FALLING AGGREGATE DEMAND
 NO EVIDENCE OF FALLING PRICES IN UNITED STATES
 
 QUESTION BECOMES HOW FAST IS AGGREGATE DEMAND RISING
 
 PHILLIPS CURVE PATTERN
 MISERY INDEX
 STAGFLATION
 CURRENT MAP
 
 EFFECT OF EXPECTATIONS
 WHAT IS LOGICAL EXPECTED INFLATION?
 LEARNED (ADAPTIVE)
 RATIONAL (FORWARD LOOKING)
 
EFFECTS OF INCREASING AGGREGATE SUPPLY
 BY ITSELF
 INCREASES GDP
 INCREASES JOBS (PROBABLY)
 REDUCES PRICES
  DISTINGUISH BETWEEN DEFLATION AND DISINFLATION
  TEXT HAS IT WRONG ON PAGE 331
 
 
COMBINING MORE AGGREGATE DEMAND WITH MORE AGGREGATE SUPPLY
 MOVES PHILLIPS CURVE LEFT
 BETTER ALTERNATIVES
 


CAUSES OF RIGHT-SHIFT IN AGGREGATE SUPPLY
 COST REDUCTION
 
 LABOR SUPPLY
  MARGINAL TAX RATE
 AVERAGE TAX RATES
 MARGINAL TAX RATES
  THEY ARE ALL MARGINAL TAX RATES
  IMMIGRATION
  HUMAN CAPITAL/EDUCATION
 TRANSFER PAYMENTS
 
 LABOR PRODUCTIVITY
 ONE MAN AND A DOG
 
 INVESTMENT
 ENTREPRENEURSHIP
  AFTER TAX PROFIT EXPECTATIONS
 MARGINAL TAX RATE
  EXPECTATIONS
 
 SAVING INCENTIVES/SOCIAL SECURITY
 
 DEREGULATION
 MINIMUM WAGES
 OSHA
 ENVIRONMENTAL
 
 TRADE BARRIERS
 
 INFRASTRUCTURE 
 
SHOW ME THE MONEY