Comments on: IS-LM FrameWork

By: MahmouD

MahmouD — Fri, 09 Jan 2009 17:44:23 +0000

Hi yasmeen ,
what statement do u mean ???
hwa 3mooman byb2a feeh equilibrium output( Y*) point betweeen AD and Short run aggregate supply curvers ,where this point is considerd the optimal to be achieved in the short run
BECAUSE :
Whenever equilibrium output exceeds Y*(optimal output) it will cause inflation where increase in price will be greater than change in output . ΔP > ΔY

And whenever equilibrium point is less than Y* it’s considerd inefficient where the country at this point can produce more .

bs hwa 3mooman kan feeh graph …bs i couldn’t paste it here.. ,i just put the link of that graph in the second comment (when u open the page it’s the second graph).

By: yasmeen adel

yasmeen adel — Fri, 09 Jan 2009 13:42:21 +0000

please Anonymous
Can you explain ,what do you mean by the statement

By: MahmouD

MahmouD — Sat, 03 Jan 2009 21:32:14 +0000

:S sorry it`s the second diagram in that page (AD and AS)

By: MahmouD

MahmouD — Sat, 03 Jan 2009 21:31:00 +0000

Guys soorry there is a diagram that’s suppose to be there…
u can get it from the following link :

http://en.wikipedia.org/wiki/Aggregate_demand

By: Anonymous

Anonymous — Sat, 03 Jan 2009 21:24:20 +0000

GUYS NEED YOUR OPINION ABOUT THE FOLLOWING

Optimal growth rate in the SHORT RUN

We can determine the optimal growth rate through determining the optimal output (or potential output ) in the short run .

Consider the following diagram :

Y* = optimal output
Y0 = output produced at AD (assuming it’s actual output)
Y1 =output produced at new AD

So whenever actual output is less than optimal output ,therefore it’s inefficient and thus considered a problem .

And whenever actual output exceeds optimal output it will lead to inflation and similarly considered inefficient.

And therefore the optimal growth rate = Y* – Y0 = ΔY

In my opinion this will lead us to the assumption “that every country has it’s unique optimal growth rate” ,where it has it’s own SRAS and AD equations ,and thus if we could get the SRAS equation for Egypt therefore we can easily drive the short run supply curve ,and easily get the unique optimal growth rate for Egypt .
And also determine the actual output produced by Egypt..

By: MahmouD

MahmouD — Tue, 30 Dec 2008 20:25:43 +0000

salamo 3likom ,
Guys would any one post the questions of the economic population that Dr,hoda gave before