ECO 3132 Lecture Notes - Lecture 15: Business Cycle, Takers, Perfect Competition

• School: University of Ottawa
• Department: Economics
• Course: ECO 3132
• Professor: Mario Seccareccia

Document Summary

If you (cid:272)o(cid:374)su(cid:373)e (cid:373)ore the(cid:374) half i(cid:374) the first se(cid:272)tor the(cid:374) it"ll (cid:271)e less the(cid:374) (cid:374)(cid:1005)(cid:1004) per(cid:272)e(cid:374)t. but if they sa(cid:448)e (cid:373)ore the(cid:374) half the(cid:374) it"ll (cid:271)e (cid:373)ore the(cid:374) (cid:1005)(cid:1004) per(cid:272)e(cid:374)t. Marx teories of the business cycle: he explains that depending the pattern of income distribution between share of wage and share of labour act will effect he business cycles. Marx theories of the business cycle, wage profit trade off theory: as real wages increase, we wil have the capitalist will invest in labour saving techniques. They are trying to cut the demand for labour by buying machines. This will cause a decline in wages: rising unemployment to the point of where demand will eventually increase without the rise of wages where the profits have increased.