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4 edition of Oligopolistic pricing and the effects of aggregate demand on economic activity found in the catalog.

Oligopolistic pricing and the effects of aggregate demand on economic activity

by Julio Rotemberg

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Published by Center for Computational Research in Economics and Management Science, Sloan School of Management, Massachusetts Institute of Technology in Cambridge, Mass .
Written in English


Edition Notes

Other titlesAggregate demand on economic activity, oligopolistic pricing and the effects of.
Statementby Julio J. Rotemberg, Michael Woodford.
Series[Working paper] / Center for Computational Research in Economics and Management Science -- WP#3094-89, Working paper (Sloan School of Management) -- 3094-89.
ContributionsSloan School of Management. Center for Computational Research in Economics and Management Science.
The Physical Object
Pagination52 p., [14] p. of plates :
Number of Pages52
ID Numbers
Open LibraryOL17940215M
OCLC/WorldCa20927325

Aggregate Demand and the Price Level. There are several explanations for an inverse relationship between AD and the price level in an economy. g real incomes: As the price level rises, the real value of people’s incomes fall and consumers are less able to buy the items they want or over the course of a year all prices rose by 10 per cent whilst your money income remained the. Rotemberg, J. J., and M. Woodford () ‘Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity’, Journal of Political Economy, , – Google Scholar.

The graph shows an economy's long-run aggregate supply curve. Draw an aggregate demand curve and a short-run aggregate supply curve such that when the economy is in long-run equilibrium, the price level is Label the curves. Draw a point at the long-run macroeconomic equilibrium. When a fall in the price of one good reduces the demand for another good, the two goods are called substitutes (yogurt for ice cream). When a fall in the price of one good raises the demand for another good, the two goods are called complements (hot fudge and ice cream).

Changes in Short-Run Aggregate Supply and Aggregate Demand The equilibrium price and quantity in the economy will change when either the short-run aggregate supply (SRAS) or the aggregate demand (AD) curve shifts. The AD curve shifts when any of the components of AD change—consumption (C), investment (I), government spending (G), exports (X). Aggregate Demand and Economic Growth To examine perhaps the simplest of aggregate demand-driven growth models, government fiscal activity and that the economy is closed, goods market equilib-rium is achieved through variations in Y, of oligopolistic firms (see Lavoie, ), then a long-run equilibrium in which the.


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Oligopolistic pricing and the effects of aggregate demand on economic activity by Julio Rotemberg Download PDF EPUB FB2

Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity Julio J. Rotemberg Massachusetts Institute of Technology Michael Woodford University of Chicago We construct a dynamic general equilibrium model in which the typical industry colludes by threatening to punish deviations from an implicitly agreed-on pricing path.

Get this from a library. Oligopolistic pricing and the effects of aggregate demand on economic activity. [Julio J Rotemberg; Michael Woodford; National Bureau of Economic Research.]. Rotemberg, Julio J & Woodford, Michael, "Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity," Journal of Political Economy, University of Chicago Press, vol.

(6), pagesDecember. Rotemberg, Julio J & Woodford, Michael, "Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity," Journal of Political Economy. BibTeX @ARTICLE{Woodford92oligopolisticpricing, author = {Julio J.

Rotemberg Michael Woodford and Julio J. Rotemberg and Michael Woodford}, title = {Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity}, journal = {Journal of Political Economy}, year =.

Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity. By Julio J Rotemberg and Michael Woodford. Abstract. The authors construct a dynamic general equilibrium model in which the typical industry colludes by threatening to punish deviations from an implicitly agreed-on pricing path.

They use methods similar to those of. CENTERFORCOMPUTATIONALRESEARCH NECONOMICSANDMANAGEMENTSCIENCE OligopolisticPricingandtheEffectsof AggregateDemandonEconomicActivity by erg.

Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity. By Julio J. Rotemberg and Michael Woodford. Get PDF ( KB) Abstract. We construct a dynamic general equilibrium model in which the typical industry colludes by threatening to punish deviations from an implicitly agreed upon pricing path.

Full text of "Oligopolistic pricing and the effects of aggregate demand on economic activity" See other formats b: ^H. CENTER FOR COMPUTATIONAL RESEARCH N ECONOMICS AND MANAGEMENT SCIENCE Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity by Julio J.

Rotemberg Massachusetts Institute of Technology Michael Woodford University of. The demand curve will be kinked, at the current price. Even when there is a large rise in marginal cost, price tends to stick close to its original, given the high price elasticity of demand for any price rise.

At price P, and output Q, revenue will be maximised. Maximising profits. Get this from a library. Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity.

[Julio J Rotemberg; Michael Woodford; National Bureau of Economic Research.] -- Abstract: We construct a dynamic general equilibrium model in which the typical.

Abstract: industry colludes by threatening to punish deviations from an implicitly ct: upon pricing. The responses predicted by the oligopolistic model are closer to the empirical responses estimated with postwar U.S.

data than the corresponding predictions of the competitive model. Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity | Journal of Political Economy Cited by: Aggregate Supply and Aggregate Demand.

Aggregate supply is the total amount of goods and services that firms are willing to sell at a given price in an economy. The aggregate demand is the total amounts of goods and services that will be purchased at all possible price levels.

In a standard AS-AD model, the output (Y) is the x-axis and price (P. Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity Julio J.

Rotemberg, Michael Woodford. NBER Working Paper No. Issued in December NBER Program(s):Economic Fluctuations and Growth. Rotemberg, J. J., and Michael Woodford. "Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity." Journal of Political Economy (December ): – Cited by:   Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity ”.

Journal of Political Economy,   June Aggregate Demand and Aggregate Supply Effects of COVID A Real-time Analysis. Geert Bekaert, Eric Engstrom, and Andrey Ermolov Abstract: We extract aggregate demand and supply shocks for the US economy from real-time survey data on inflation and real GDP growth using a novel identification scheme.

Rotemberg, J. and M. Woodford (), Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity, Working Paper Nr.National Bureau of Economic Research. Rotemberg, J. and M. Woodford (), Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity, Journal of Political Economy, Economics Game Theory of Oligopolistic Pricing Strategies.

In competitive, monopolistically competitive, and monopolistic markets, the profit maximizing strategy is to produce that quantity of product where marginal revenue = marginal is also true of oligopolistic markets — the problem is, it is difficult for a firm in an oligopoly to determine its marginal revenue because the.

Aggregate demand (AD) is the total demand for goods and services produced within the economy over a period of time. Aggregate demand (AD) is composed of various components. AD = C+I+G+ (X-M) C = Consumer expenditure on goods and services. I = Gross capital investment – i.e. investment spending on capital goods e.g.

factories and machines. Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity. ” Journal of Political Economy,pp. B.M. Friedman, in International Encyclopedia of the Social & Behavioral Sciences, Price misperception effects on aggregate supply.

Under some economic theories, this tendency for output to increase and prices to rise following expansionary monetary policy has a different interpretation: what matters is that the increased prices due to greater aggregate demand come as a surprise.As usual, the pandemic is both an aggregate demand and an aggregate supply shock, but the fact that it has hit China first and hardest, and the supply chain implications of this, make it something new.

This column introduces a new Vox eBook containing 14 essays written by leading economists on a wide array of topics related to COVID economics.