sch9 - Ch9. CHAPTER 9 Introduction to Economic Fluctuations...

Info iconThis preview shows pages 1–16. Sign up to view the full content.

View Full Document Right Arrow Icon
1 CHAPTER 9 Introduction to Economic Fluctuations Ch9. Introduction to Business Cycle 
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 CHAPTER 9 Introduction to Economic Fluctuations Business Cycle § Facts about business cycle ( Data ) § Short-run Vs Long run § Aggregate Demand curve § Aggregate Supply curve in the short run and in the long run § The AD-AS model and shocks
Background image of page 2
3 CHAPTER 9      Introduction to Economic Fluctuations Data § FRED § http://www.stls.frb.org/fred/abotfred.html § Bureau of Labor Statistics
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 CHAPTER 9      Introduction to Economic Fluctuations Real GDP ( level ) 
Background image of page 4
5 CHAPTER 9      Introduction to Economic Fluctuations  Consumption ( level )
Background image of page 5

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

View Full DocumentRight Arrow Icon
6 CHAPTER 9      Introduction to Economic Fluctuations Investment ( level )
Background image of page 6
7 CHAPTER 9      Introduction to Economic Fluctuations  Long run trend Vs cycles § Long-run trend ? §
Background image of page 7

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

View Full DocumentRight Arrow Icon
8 CHAPTER 9      Introduction to Economic Fluctuations 1970 1975 1980 1985 1990 1995 2000 2005 2010 -4 -2 0 2 4 6 8 10 Growth rates of real GDP, consumption Percent change from 4 quarters earlier Average growth rate Real GDP growth rate Consumption growth rate
Background image of page 8
9 CHAPTER 9      Introduction to Economic Fluctuations  Real GDP growth Vs Consumption  growth § Similar pattern § Growth of Real gdp(or income ) shows larger variation than that of consumption Why? consumption smoothing i.e. when people have more income, they save more for the future. So, in the recession period, people consume with saved amount.
Background image of page 9

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

View Full DocumentRight Arrow Icon
10 CHAPTER 9      Introduction to Economic Fluctuations 1970 1975 1980 1985 1990 1995 2000 2005 2010 -30 -20 -10 0 10 20 30 40 Growth rates of real GDP, consump., investment Percent change from 4 quarters earlier Investment growth rate Real GDP growth rate Consumption growth rate
Background image of page 10
11 CHAPTER 9      Introduction to Economic Fluctuations Real GDP Vs Investment § Qualitatively similar ( similar pattern ) § Investment growth shows than real GDP growth or consumption growth. § Why?
Background image of page 11

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

View Full DocumentRight Arrow Icon
12 CHAPTER 9      Introduction to Economic Fluctuations Labor market condition § Unemployment rate § Monthly payroll data § -- § Weekly initial claims § -- § Direction of economy
Background image of page 12
13 CHAPTER 9      Introduction to Economic Fluctuations 1970 1975 1980 1985 1990 1995 2000 2005 2010 0 2 4 6 8 10 12 Unemployment Percent of labor force
Background image of page 13

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

View Full DocumentRight Arrow Icon
14 CHAPTER 9      Introduction to Economic Fluctuations Okun’s Law
Background image of page 14
15 CHAPTER 1 The Science of Macroeconomics
Background image of page 15

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

View Full DocumentRight Arrow Icon
Image of page 16
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/25/2011 for the course ECON 321 taught by Professor Sani during the Spring '08 term at Rutgers.

Page1 / 46

sch9 - Ch9. CHAPTER 9 Introduction to Economic Fluctuations...

This preview shows document pages 1 - 16. Sign up to view the full document.

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