Meeting _16 - Aggregate Demand and Aggregate Supply

Meeting _16 - Aggregate Demand and Aggregate Supply -...

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AGGREGATE DEMAND AND AGGREGATE SUPPLY
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Business Fluctuations and Business Cycles Nationwide economic activity does not just go up at a steady pace every year. Business fluctuations used to be called business cycles , but that term no longer seems appropriate because cycle implies regular or automatic recurrence.
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Expansions and Contractions The ups and downs in economy-wide economic activity are sometimes called business fluctuations Expansion Contraction
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The Typical Course of Business Fluctuations
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Recessions and Depressions Recession To consecutive quarters of negative economic growth (Negative GDP growth) Depression The Great Depression Lasted throughout most of the 1930s By 1932, 13 million people were unemployed By 1933, actual output was at least 35 percent below the nation’s productive capacity
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Aggregate demand is the total dollar value of all planned expenditures in the economy.
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Meeting _16 - Aggregate Demand and Aggregate Supply -...

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