ECON 002 Lecture Notes - Lecture 27: Government Spending, Aggregate Demand
Document Summary
Econ-002: macro economics lecture 27 aggregate supply and demand iv. 25% best midterm + 22% second best midterm + 40% final exam + 13* aplia. There will be question from the solow model. Check on canvas if the midterm scores are correct. When the housing price increased, people wanted to borrow more money, and mortgage to buy bigger houses. Because they anticipated an increase in the housing prices we can see this as making an investment. Foreclose asking for loans on housing that has great bubbles, then take the money away and leave house for the banks. Price of housing now goes down builder stops building. Start to lay out construction workers, stop purchasing from home-depo and other places. To shift the ad back fed and government start to buy some of the assets bank held; obama passed aria american recovery and investment act increased.
