ECON 202 Lecture Notes - Lecture 10: Baby Boomers, Classical Dichotomy, Uric Acid
Document Summary
Changes in c: stock market boom demand shifts right/crash=demand shifts left. State and local spending, e. g. , roads, schools. Booms/recessions in countries that buy our exports. appreciations/depreciation resulting from international speculation. The as curve shows the total quantity of g&s firms produce and sell at any given price level. The natural rate of output: (yn) is the amount of output the economy produces when unemployment is at its natural rate. Yn is also called potential output or full-employment output. Yn determined by the economy"s stocks of labor,capital, and natural resources, and the level of technology. Any event that changes any of the determinants of yn will shift lras. Changes in l or natural rate of unemployment immigration. Market imperfection: firms price their products and offer wages to their inputs based on their expectation of the general price level, pe. When real price p=\p they should be able to adjust their pe accordingly: sticky wage, sticky price, misconception.
