Brief Outline of Topics Covered in Lecture 18
Chapter 22 Aggregate Demand and Supply Analysis [continued]
The Aggregate Supply Curve
Equilibrium of AS and AD
- Shifts in the LRAS curve
- Shifts in the SRAS curve
- SR and LR response to AD shocks
- SR and LR response to AS shocks
Extra Reading
Long Road to Normal for Bank Business Lending, by Simon Kwan, FRBSF Economic Letter: Following the 2007–09 financial crisis, bank lending to businesses plummeted. Five years later, the dollar amount of bank commercial and industrial lending has finally surpassed the previous peak. However, despite very accommodative monetary policy and abundant excess reserves in the banking system, the spread of the commercial loan interest rates over the target federal funds rate remains above its long-run average. This suggests that business loans are not yet cheap relative to banks’ funding cost. ...[continue]...
