ECO102H1 Lecture 1: & Texbook: Chapter 6&7
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16 Jan 2019
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New ideas founded by keynes after the powerful negative consequences of the great depression in the economy. Recessions and slow economic growths are mainly caused by inadequate spending. Solution government intervention (monetary and fiscal policy) Monetary policy: using changes in money supply and interest rates. Fiscal policy: using changes in taxes and government spending. Expansions periods with a short-term economic growth, meaning. Contractions period with a short term economic downturn, meaning increase in output and employment decrease in output and employment. Peaks happen when the economy worsens moves from a period of. Throughs happen when the economy improves moves from a period of economic growth, to decrease in output economic downturn, to increase in output. Decrease in output and in number of firms functioning. Long-run economic growth is a modern invention (macroeconomics, third. Countries do not grow at the same rate. Meaning the growth in the economy per person.