Lecture 21

Lecture 21 - American Heritage November 9 2011 November 9...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: American Heritage November 9, 2011 November 9, 2011 • Midterm #2: November 9 th-11 th in the Testing Center • Wednesday, November 9 th (NO FEE) • Thursday, November 10 th--$5 late fee • Friday, November 11 th--$7 late fee-- must have test in hand by 11:00 am! • Must know all of the articles and through amendment 15 • Review Room will be closed during the exam. • It will open again Monday, November 14 th to review the exam • Essay #4 due at the START of labs on Thursday, Nov.17 th or Friday, Nov. 18 th • Must turn it in hard copy and electronically via black board Market Weaknesses • Imperfect Information • Monopoly • Public Goods • Externalities • Economic Instability or Recession • Economic Injustice Recession What Is a Recession? Recession • Definition: “a significant decline in economic activity spread across the country, lasting more than a few months ...” • National Bureau of Economic Research Business Cycle Dating Committee • Great Depression lasted 43 months • Previous post-WWII recessions have lasted from 6 to 16 months (average: 10 months) Why Do Recessions Occur? • A negative “shock” hits the economy • Example: stock market correction, oil price increase, bank panic, etc. • If wages and prices adjust downward quickly, full employment is preserved and output stabilizes • But contracts, inertia, and other forces (government policies?) prevent quick adjustment of wages and prices • Output falls and resources are unemployed, including labor • Recovery takes place as wages and prices adjust Recession Spiral • Problems in one part of the economy are likely to affect other parts of the economy. Recessions • Recessions are costly • Lost employment of resources/income • Lost output • Recessions may also have some benefits • Allow for readjustments which can lead to increased standard of living in the future • Like going to the dentist -- painful now, helpful later What Can Government Do? Government Do?...
View Full Document

{[ snackBarMessage ]}

Page1 / 70

Lecture 21 - American Heritage November 9 2011 November 9...

This preview shows document pages 1 - 12. Sign up to view the full document.

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