L8R gdp - National Income Accounting Lecture 8 Jennifer P....

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http://www.arts.cornell.edu/econ/wissink/econ102jpw/ macroS09 LEC8-1 National Income Accounting Lecture 8 Jennifer P. Wissink ©2009 John M. Abowd and Jennifer P. Wissink, all rights reserved. February 11 2009
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http://www.arts.cornell.edu/econ/wissink/econ102jpw/ macroS09 LEC8-2 Announcements Next week: QUIZ #3-econ1120-S09 due Sunday night. Don’t forget to DO: – WISSINK OLD TRADITIONAL PROBLEM SETS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! IN THE NEWS Senate Approves Stimulus Plan http://www.npr.org/templates/story/story.php?storyId=100519097 Administration Outlines Bailout Spending Plan http://www.npr.org/templates/story/story.php?storyId=100501192 Stocks Slide as New Bailout Disappoints http://www.nytimes.com/2009/02/11/business/11markets.html?_r=1&
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http://www.arts.cornell.edu/econ/wissink/econ102jpw/ macroS09 LEC8-3 A Very Brief Macroeconomic History F.D.R. and The New Deal WWII and its aftermath Keynesian “success” into the 60’s Fine-tuning was the phrase used by Walter Heller in the 60’s to refer to the government’s role in regulating inflation and unemployment. Keynesian “disillusionment” The use of Keynesian policy to fine-tune the economy in the 1960s, led to disillusionment in the 1970s and early 1980s. Inflation and Stagflation » Inflation occurs when there an increase in the overall price level. » Stagflation occurs when the overall price level rises rapidly (inflation) during periods of recession or high and persistent unemployment (stagnation). – Supply Side and “Reaganomics” in the 80’s Micro-foundations of macroeconomics Keynesian “renaissance?”
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http://www.arts.cornell.edu/econ/wissink/econ102jpw/ macroS09 LEC8-4 The business cycle is the cycle of short-term ups and downs in the economy. The main measure of how an economy is doing is aggregate output: Aggregate output is the total quantity of goods and services produced in an economy in a given period. » Note: In order to add up all the different things an economy produces, one uses a currency value. » For example, in the U.S., we use the dollar value of the total
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This note was uploaded on 03/10/2009 for the course ECON 102 taught by Professor Kyle during the Spring '08 term at Cornell University (Engineering School).

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L8R gdp - National Income Accounting Lecture 8 Jennifer P....

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