MacroEcon Lecture Equilibrium

MacroEcon Lecture Equilibrium - November 10 Equilibrium:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
November 10 Equilibrium: supply= to the demand 1) 2) If we do have equilibrium of a national economy, is the national equilibrium synonymous with perfection? If we do achieve this equilibrium, is this perfect? 3) If we do not have equilibrium, is this necessarily a bad thing? 2010- 2011: NI= national income GDP= NI C S (savings) I AE (C+I) Full capacity recession 410 billion 405 billion 5 billion 20 billion 425 billion inflation GDP increase, employment increase 470 450 20 20 470 (equilibrium ) same pointA Same point B (stays same) 510 480 30 20 500 Recession- emply. Goes down and GDP goes down Worse recession, slide deeper into PPF assumption #1: this will be a private economy ; no G (government purchases) #2: closed economy: no international trade (no NX) equilibrium= stability (interchangeable, equal to each other) if in equilibrium, economy is in stability you’re stuck where you are 510- goes into recession because they cant afford to keep the workers not spending as much Question 2)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

MacroEcon Lecture Equilibrium - November 10 Equilibrium:...

This preview shows document pages 1 - 2. Sign up to view the full document.

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