ECO105Y1 Lecture Notes - Lecture 14: Political Spectrum, Institute For Operations Research And The Management Sciences, Fiscal Policy
Document Summary
Macroeconomics analyzes the performance of the whole canadian economy and the global economy the combined outcomes of all individual microeconomics choices. Output markets determine the value of all of products/services sold. The connections between the forces of demand and supply in input and output markets may impede the coordination of the smart choices of households and businesses. Business cycles: ups and downs of overall economic activity. Government failure: government policy fails to serve the public interest. No- left alone, markets fail to quickly self adjust. Origins of business cycles causes internal to markets; coordination failures between input and output markets; money, banking, expectations. Gross domestic product (gpd): value of all final products and services produces annually in a country. Unemployed person: person who is not employed and actively seeking employment. Stay- at- home parents are not considered unemployed since they are not seeking employement. Inflation: refers to a ride in the average level of all prices in an economy,
