This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: o Final Good: a product which is ready to be used by consumers • Two Key Characteristics of GDP o It grows over time o It fluctuates as it grows • An Economic Rollercoaster o Economic Output o Economic Growth Rate Inflation Rate o Rise in general price level o Unemployment rate Video: Unemployment and the Great Depression • As economic growth decreases, unemployment increases • Keynesian Explanation: first to explain why the economy goes into recession and stays there • Business Cycles o Cyclical movements in output, prices and unemployment o Business cycles differ • The Typical Course of Business Fluctuating (see page 127 in text) • Recession o Growth rate of GDP falls o Firms decrease production o Unemployment Rises • Expansion o GDP growth rate rises o Firms increase production o Unemployment Falls...
View Full Document
This note was uploaded on 02/21/2008 for the course ECON 4.3 taught by Professor Fox during the Spring '99 term at Pennsylvania State University, University Park.
- Spring '99