04_Lecture_Slides_with_Graphs

04_Lecture_Slides_with_Graphs - Economics 104 Fall 2010 1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 104 Fall 2010 1 The Economy in the Short Run — Economic Fluctuations 1. A Brief Introduction to Short-Term Economic Fluctuations; chapter 7 2. Spending and Output in the Short Run (basic Keynesian model); chapter 8
Background image of page 1

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

View Full DocumentRight Arrow Icon
Economics 104 Fall 2010 2 The Economy in the Short Run — Economic Fluctuations 1. A Brief Introduction to Short-Term Economic Fluctuations Economic fluctuations : the cyclical behaviour of the economy over time. Recession: the economy is growing at a rate below normal Expansion: the economy is growing at a rate above normal ...what do we mean by normal? Key Characteristics of Economic Fluctuations Business cycles are not regular cycles; they are irregular and vary in the size of fluctuations Recessions and expansions are difficult to predict Business cycles involve most or all of the economy (not just certain sectors) Unemployment rises sharply in a recession and typically declines more slowly (often very slowly) Recessions usually see a fall in inflation; some but not all recessions are preceded by a rise in inflation.
Background image of page 2
UPDATED JUNE 2010 BUSINESS CYCLE PEAK AND TROUGH DATES, 21 Countries, 1948-2009, Page 1 of 2 SOURCE: Economic Cycle Research Institute (ECRI) www.businesscycle.com (except for the United States, NBER). NOTE: Shaded cells represent periods for which data are not available. Peak or
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 11

04_Lecture_Slides_with_Graphs - Economics 104 Fall 2010 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

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