deflationary and inflationary gaps

Deflationary and inflationary gapsDeflationary and inflationary gaps

Deflationary and inflationary gapsDeflationary and inflationary gaps

The deflationary gapThe deflationary gap

OY

W

W, J

J

Ye

The deflationary gapThe deflationary gap

OY

W

W, J

J

YeYF

Deflationary gap

c

d

The deflationary gapThe deflationary gap

OY

W, J, E

YeYF

Y

E

The deflationary gapThe deflationary gap

OYYe

YF

Y

Ea

b

Deflationary gap

W, J, EThe deflationary gapThe deflationary gap

OY

W

J

YeYF

c

d

Y

Ea

b

Deflationary gap

W, J, EThe deflationary gapThe deflationary gap

Deflationary and inflationary gapsDeflationary and inflationary gaps

The inflationary gapThe inflationary gap

OY

W

W, J

Ye

J

The inflationary gapThe inflationary gap

OY

W

W, J

YeYF

J

The inflationary gapThe inflationary gap

OY

W

W, J

YeYF

Inflationary gap

Jg

h

The inflationary gapThe inflationary gap

OY

YE

W, J, E

Ye

The inflationary gapThe inflationary gap

OY

YE

W, J, E

Ye

The inflationary gapThe inflationary gap

OYYF

YE

Inflationary gap

W, J, E

e

f

Ye

The inflationary gapThe inflationary gap

OYYe

YF

YE

Inflationary gap

e

f

W

Jg

h

W, J, EThe inflationary gapThe inflationary gap

Deflationary and inflationary gapsDeflationary and inflationary gaps

Unemploymentand inflation

Unemploymentand inflation

OY

Pri

ce le

vel

YF

AS1

Unemployment and inflationUnemployment and inflation

OY

AS1

Pri

ce le

vel

YF

AS2

Unemployment and inflationUnemployment and inflation

Deflationary and inflationary gapsDeflationary and inflationary gaps

Effects of increases in aggregate demand on

national output

Effects of increases in aggregate demand on

national output

O

Pric

e le

vel

National output

YP

AS

The effects of increases in aggregate demandon national output

The effects of increases in aggregate demandon national output

O Y1

Pric

e le

vel

National output

Y2

AS

Y3 Y4 YP

AD3AD2AD1

AD4

The effects of increases in aggregate demandon national output

The effects of increases in aggregate demandon national output