CAS EC 102 Lecture Notes - Lecture 4: Gdp Deflator, Nominal Interest Rate, Aggregate Demand
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CAS EC 102 Full Course Notes
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Macroeconomics is the study of forces that you cannot control. However, if you can predict macroeconomic changes and correctly adjust you will do very well. Macroeconomic indicators are past and current pieces of information. Managers who are able to predict and anticipate these data in the future, can do much better than those who simply react to changing macroeconomic circumstances. The model of aggregate demand and aggregate supply both explains and predicts what will happen to gdp and inflation when major shocks and changes happen to an economy. Business success or failure is dependent on 2 factors. How good you are at running the business. Sometimes, even the best managers cannot save a business that is being effected by an economic recession. Sometimes, the worst managers make a lot of money during an economic expansion. Tracking general economic conditions can have a large effect on businesses. Introduction to the aggregate supply and demand curves.