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Unformatted text preview: changes in the quality of labor or capital changes in the availability of raw materials unusually good or bad weather changes in government regulations affecting production Economic booms result from beneficial productivity shocks and recessions are caused by adverse productivity shocks. Explaining Past Business Cycle Episodes Vietnam War buildup: 1964-70 negative supply shocks: 1973-75 and 1978-80 credit crunch: 1990-91...
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- Fall '09
- Personal Finance