ECON 121 - Homework 2

ECON 121 - Homework 2 - Principles of Economics I Name: _ 1...

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Principles of Economics I Homework 2 Name: _________________________ 1 a) What are the three suspected causes of the great depression? [pg. 92] b) What are living standards and how are they measured? [ppg. 93-94] c) Why do economists consider average labor productivity to be important for living standards? [pg. 95] d) Distinguish between a recession and an expansion? [pg. 96] e) Distinguish between trade surplus and trade deficit. [pg. 100] f) Distinguish between budget deficit and budget surplus. [pg. 101] 1. Poor economic policymaking and planning. 2. Overinflation of stock market prices and speculation. 3. Capitalism. Living standards are the degree to which people have access to goods and services that make their lives easier, healthier, safer, and more enjoyable. They are measured using output per person, or: Total output Population Economists consider average labor productivity to be important for living standards because the two are closely linked. A recession is a period of negative output growth (economic slowdown), whereas an expansion is a period of positive output growth (economic acceleration). A strong recession is called a depression, whereas a strong
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This note was uploaded on 11/10/2009 for the course ECON 121 taught by Professor Unknown during the Fall '04 term at Bloomsburg.

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ECON 121 - Homework 2 - Principles of Economics I Name: _ 1...

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