Macro Economics Notes

Economics Macro 8/26/11 1. centre append charts deal with Price levels / rising prices rates and realistic GDP. 2. Pricelevels/ pretension rate is on the y-axis and the real GDP is on the X-axis. 3. exuberant employment point is reached when the AS curve starts to go good and intersects the AD curve. 4. Savings hurt the GDP and outlay helps plus the GDP. 5. Ways to slow down the economy argon halt spending, Raise taxes, Increase imports and decrease exports, unemployment rate increase. 6. Cost-Push pretentiousness: Occurs when leave decreases and production slows down. 7. CP flash through history: * 1973, 1979, 1990. This occurred repayable to a shortage in oil provision. * The years that followed resulted in a recessional period. * America has gone through triple recessions. * The chief(prenominal) cause has been due to oil problems. * The Post Office is ordinate off many workers due to the inter net. People are victimization email to send documents and pay bills.

* Demand Pull inflation: occurs when inflation and prices go up due to aggregate shoot increase. * Ms=GDP * Money supply 1000% * If the bullion supply grows so does the GDP * There are another(prenominal) formulas other than the Keynesian Theory, There is the Monetarist Theory, and Supply-side Economics, and the Austrian School. * Paul Krugman is a hardline Keynesianist. Believes that organisation spending is the key to all of our problems. * Milton freedwoman believes that our banks make or break our economy. * Arthur Laffer is a bel! iever in supply side.If you motivation to get a full essay, enounce it on our website: BestEssayCheap.com

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