1. TERM PAPER PRESENTATION
ON
1)LONGRUN AGGREGATE SUPPLY CURVE
2)LONG RUN AGGREGATE DEMAND CURVE
3)INFLATION GROWTH
PRESENTED BY-
R.V. ADITYA KUMAR(131204)
ATUL KUMAR PRASAD(131205)
RAGHVENDRA KUMAR(131206)
K.ASHRITHA(131251)
HARIKA(131250) 1

2. LONG RUN AGGREGATE SUPPLY CURVE
 It doesn’t depends on price.
 It depends on factors of production-
1. Natural resource
2. Marginal efficiency of capital
3. Labor productivity
4. Technology superiority.
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3. LONG RUN AGGREGATE SUPPLY CURVE
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4. IN THE LONG RUN-
1. Technology progress reflects to the right, the
aggregate supply curve.
2. The growth in money supply shifts aggregate
demand.
3. Leading to growth in output
4. Ongoing inflation.
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5. LONG RUN AGGREGATE DEMAND CURVE
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6. QUANTITY THEORY OF MONEY
MV=PY
 M = money supply, V = velocity of money, P = price
level, Y = real GDP
 Assumptions: V is constant
 Money has no effect on real variables (so ΔM has
no effect on Y)
 Y is entirely determined by the fixed stock of labor,
capital and technology
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7. SOME POINTS ON INFLATION AND GROWTH
 Inflation doesn’t affects us when growth of income
is more then inflation.
 Inflation is good because it attracts investment.
 Some time to control inflation we have to control
growth.
 Various tool having RBI to control inflation-
1. CRR
2. SLR
3. TAX and REVENUES.
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8. Thank you…
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