8 figure ination during the great depression ryan w

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Unformatted text preview: og (GU) Chapter 1: Introduction Spring 2014 19 / 24 Markets and Institutions Circular Flow (figure 1.9) Figure : Circular Flow Ryan W. Herzog (GU) Chapter 1: Introduction Spring 2014 20 / 24 Markets and Institutions Key Players Households Government Firms Rest of the world Ryan W. Herzog (GU) Chapter 1: Introduction Spring 2014 21 / 24 Markets and Institutions Policy Our government actively pursues policies to maximize economic well being. In this class our focus will be on macroeconomic policies used to minimize fluctuations in the business cycle. Fiscal policy: Conducted by the federal government through spending and tax programs. Monetary policy: Conducted by the Federal Reserve through changing interest rates to promote investment. Ryan W. Herzog (GU) Chapter 1: Introduction Spring 2014 22 / 24 Brief History Great Depression The Great Depression is referred to as the holy grail of macroeconomics. Adam Smith’s invisible hand, markets are self correcting. John Maynard Keynes, markets are slow to adjust and may require government intervention. Ryan W. Herzog (GU) Chapter 1: Introduction Spring 2014 23 / 24 Key Issues in Macroeconomics Key questions today and going forward Jobs, where are they? What are the macroeconomic effects of income inequality? Inflation or deflation? Government deficits or more stimulus? Spending or saving? Long-term unemployment Europe China, panda or dragon? Ryan W. Herzog (GU) Chapter 1: Introduction Spring 2014 24 / 24...
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This document was uploaded on 03/18/2014 for the course ECON 202 at Gonzaga.

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