Economics 2152A/B Lecture Notes - Factors Of Production, Business Cycle
15 Nov 2012
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Questions answers will be available at the cardinal carter library one week before each exam. Macroeconomics is the study of the structure and performance (functioning) of national economics and policies that governments use to try to affect economic performance. What causes a nation"s economic activity to fluctuate (business cycle)short term: supply shocks, demand shocks. What causes unemployment: during the 1930"s canadian rate of unemployment was 20, during world war ii, only 2% What causes price level to rise (inflation): demand pull( when demand is higher then supply, supply push(everything else is effected by one thing) If bank make more money then is needed and interest rates go down example of demand pull. Bank of canada inflation rate is between 1% and 3%
