Political Science 2211E Lecture Notes - Gross Domestic Product, Disinflation, Aggregate Demand

• School: Western University
• Department: Political Science
• Course: Political Science 2211E
• Professor: Adam Harmes

Document Summary

Today"s topics: domestic macroeconomics, international macroeconomics, the world economy before the great depression. Supply goes up, price goes down: so much of one product, need to lower price to sell (reduce-to clear) Aggregate demand: all demand added up together, the total demand for goods and services in the economy : demand determined by: Amount of money consumers and firms have to spend. Economic growth: changes in the size of the national economy, measured through gross domestic product (gdp, gdp: the value of all good and services produced in a country in a given year . Negative growth: when gdp shrinks, it"s referred to as negative growth , 2 quarters of negative growth= recession. Must shrink in two consecutive quarters of negative economic growth to be considered recession. Aggregate demand and growth: demand goes up, growth goes up, demand goes down, growth goes down.