1)Students should be able to explain why the AS-curve is vertical in the long run 2)Students should be able to explain why the AS-curve is positively sloped when wages are not fully flexible. entsshould understand the implications of the infl xpec tations-augmented Phillips curve 4)Students should be able to explain Lucas'critique of the inflation-expectations-augmented Phillips curve and how rational expectations can he modified to allow for the role of mistakes 5)Studentsshould be able toexplain the reasons for wage and price rigidity in the run nd know what such rigidity implies for stabilization policy 6)Students should be able to explain the short-run and long-run adjustment processes that follow an economic disturbance. 7)Students should be able to explain the four steps used to derive the aggregate nts should be able to state the effects of adverse and favorable supply shocks and suggest appropriate policy responses (三)思考与实践 1.Suppose that,in an economy initially at full-employment,the central bank increases the money supply. a)How will this affect output and unemployment in the short run? b)How will this affect output and unemployment in the long run? c)Use an AS-AD graph to show the transition from the short run to the long run. 2.Suppose that an economy initially at full-employment is hit by an adverse supply shock. a)What will happen to output and the price level in the short run? b)What will happen to output and the price level in the long run? c)If left to its own devices,the economy will follow an adjustment process very similar to the one you described in part (c)of the last question.Suppose however,that the goverment intervenes.Show,using an AS-AD graph,how the government can use accommodating monetary or fiscal policy to retum output and unemployment to their long-run values (四)教学方法与手段 课堂讲授，多媒体数学，课堂讨论或分组讨论。 第七章THE ANATOMY OF INFLATION AND UNEMPLOYMENT 12 12 1) Students should be able to explain why the AS-curve is vertical in the long run. 2)Students should be able to explain why the AS-curve is positively sloped when wages are not fully flexible. 3)Students should understand the implications of the inflation-expectations-augmented Phillips curve. 4)Students should be able to explain Lucas’ critique of the inflation-expectations-augmented Phillips curve and how rational expectations can be modified to allow for the role of mistakes. 5)Students should be able to explain the reasons for wage and price rigidity in the short run and know what such rigidity implies for stabilization policy. 6)Students should be able to explain the short-run and long-run adjustment processes that follow an economic disturbance. 7)Students should be able to explain the four steps used to derive the aggregate supply curve. 8)Students should be able to state the effects of adverse and favorable supply. shocks and suggest appropriate policy responses. （三） 思考与实践 1. Suppose that, in an economy initially at full-employment, the central bank increases the money supply. a) How will this affect output and unemployment in the short run? b) How will this affect output and unemployment in the long run? c) Use an AS-AD graph to show the transition from the short run to the long run. 2. Suppose that an economy initially at full-employment is hit by an adverse supply shock. a) What will happen to output and the price level in the short run? b) What will happen to output and the price level in the long run? c) If left to its own devices, the economy will follow an adjustment process very similar to the one you described in part (c) of the last question. Suppose, however, that the government intervenes. Show, using an AS-AD graph, how the government can use accommodating monetary or fiscal policy to return output and unemployment to their long-run values. （四） 教学方法与手段 课堂讲授，多媒体教学，课堂讨论或分组讨论。 第七章 THE ANATOMY OF INFLATION AND UNEMPLOYMENT