ECON202 - Chapter 4

ECON202 - Chapter 4 - c Stable Prices i Inflation is costly...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON202 Book Notes Chapter 4 1) Macroeconomic goals a) Economists – society at large – agree on three important macroeconomic goals i) Economic growth (1) The increase in our production of goods and services that occurs long periods of time ii) Full employment iii) Stable prices b) High employment i) Employment and the business cycle ii) Business cycle (1) Fluctuations in real GDP around its long term growth trend (2) Expansion (a) A period of increasing GDP (3) Recession (a) A period of significant decline in real GDP (4) Depression (a) An unusually severe recession
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: c) Stable Prices i) Inflation is costly to society ii) Need purchasing power iii) Bringing down inflation is painful (1) Decline in output (2) Rise in unemployment iv) Inflation cannot be too low (1) Causes deflation and may cause negative inflation d) Macroeconomic approach i) Look at all markets simultaneously Page 1 of 2 ECON202 Book Notes Chapter 4 (1) Aggregation (a) The process of combining different things into a single category e) Macroeconomic controversies Page 2 of 2...
View Full Document

This note was uploaded on 03/15/2009 for the course ECON 202 taught by Professor Brucemcgough during the Spring '09 term at Oregon State.

Page1 / 2

ECON202 - Chapter 4 - c Stable Prices i Inflation is costly...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online