Lecture_Economics_Notes_5-4-2010 - Lecture Notes Chapter 23...

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Lecture Notes Economics T-Th A. Ordonez Chapter 23 809-195-3K1C 5/4/10 Chpt. 23 Short-Run Economic Fluctuations o Economic activity fluctuates from year to year. In most years production of goods and services rises. On average over the past 50 years, production in the U.S. economy has grown by about 3 percent per year. In some years normal growth does not occur, indicating a recession. Short-Run Economic Fluctuations o A recession is a period of declining real incomes, and rising unemployment. o A depression is a severe recession. THREE KEY FACTS ABOUT ECONOMIC FLUCTUATIONS 1. Economic fluctuations are irregular and unpredictable. Fluctuations in the economy are often called the business cycle. These fluctuations do not follow regular or easily predictable patterns. 2. Most macroeconomic variables fluctuate together. Most macroeconomic variables that measure some type of income or production fluctuate closely together. Although many macroeconomic variables fluctuate together, they fluctuate by different amounts. 3.
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This note was uploaded on 05/10/2010 for the course ECONOMICS 809-195-3K taught by Professor A.ordonez during the Spring '10 term at Gateway Tech.

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Lecture_Economics_Notes_5-4-2010 - Lecture Notes Chapter 23...

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