{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

321LecNote03Ch9 - Instructor Kim H.H Fall 2009 Intermediate...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Instructor : Kim, H.H. Intermediate Macro Analysis Fall 2009 Economics 01:220:321 1 Chapter 9. Introduction to Economic Fluctuation In this chapter, you will learn: facts about the business cycle an introduction to aggregate demand an introduction to aggregate supply in the short run and long run how the model of aggregate demand and aggregate supply can be used to analyze the short-run and long-run effects of “shocks.” Business Cycle Chronology Facts about the business cycle GDP growth averages 3–3.5 percent per year over the long run with large fluctuations in the short run. Consumption and investment fluctuate with GDP, but consumption tends to be ___________________ and investment more volatile than GDP. Unemployment ________ during recessions and ___________ during expansions. ____________________ : the negative relationship between GDP and unemployment.
Image of page 1

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

View Full Document Right Arrow Icon
Instructor : Kim, H.H. Intermediate Macro Analysis Fall 2009 Economics 01:220:321 2 Growth rates of real GDP, consumption Growth rates of real GDP, consumption, investment Unemployment Percent change from 4 quarters earlier Average growth rate Real GDP growth rate Consumption growth rate Percent change from 4 quarters earlier Investment growth rate Real GDP growth rate Consumption growth rate
Image of page 2