ECON 102 Lecture Notes - Lecture 8: Homicide, Aggregate Demand, Capital Good
Document Summary
It is a path to greater material abundance and higher living standards. Economic growth has not made labour more unpleasant or hazardous. Growth has allowed economies to reduce pollution and be more sensitive to environmental considerations. Growth sustainable since economic growth has more to do with expansion and application of human knowledge and information than extractable natural resources. Alternating increases and decreases in economic activity over time. Peak (temporary maximum with full employment and near capacity output) Recession (decline in total output, income, employment, trade, 6 months+) The unemployment rate is the percentage of the labour force that is unemployed. Caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs. Caused by changes over time in consumer demand and in technology; alter the structure of the total demand for labour, both occupationally and geographically. Caused by a decline in total spending (or by insufficient aggregate demand) At nru, economy is at its potential gdp.
