ECO 1102 Lecture Notes - Lecture 2: Macroeconomics, Investment Banking, Money Market

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: David Gray

Document Summary

The world war put an end to the great depression, and everyone worked during the second world war. Most of the production was being used in war (military activies). The end of the war resulted in a collapse in government spending. Percent change in real gdp 4-5% per year. Rising standards of living for everybody in canada and the united states. Private investment spending and export spending more made up for the decline in government spending. Experienced rising unemployment levels and slow growth in real gdp. Steep recession followed by a strong recovery. Lower inflation at around 7-8% per year. Low inflation at around 2-3% per year. High unemployment for the first 5 years. 2000s etur(cid:374) to the (cid:858)good old days(cid:859) 2008-2009 a fi(cid:374)a(cid:374)cial (cid:373)eltdow(cid:374) causes the (cid:858)great recessio(cid:374)(cid:859) Total collapse of leeman brothers an investment bank located on wall street. Not as severe in canada as in the us.