Political Science 2211E Lecture Notes - Disinflation, Aggregate Demand, Business Cycle

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

Document Summary

2: the world economy before the great depression. If demand for specific product goes up, the price goes up. Scarcity is less; supply is greater than the demand of it. The total demand for goods and services in the economy . The amount of money consumers and firms have to spend. If people are laid off, they don"t have money to spend. Aggregate demand would go down; people would not be able to afford it. You"re not laid off but your coworkers are laid off. Changes in the size of the national economy. Gdp: the value of all goods and services produced in a country in a given year . When gdp shrinks, it"s referred to as negative growth . 2 quarters of negative growth in a row = recession. Demand up = growth up profit = economy grows. More people are buying goods and serves = companies sell more = companies get more.