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Department
Economics
Course
ECON 2000
Professor
c
Semester
Winter

Description
1MacroeconomicsChapterSummariesFrom314and16Chapter3SupplyandDemandAnIntroductionAmarketisasettingphysicalorvirtualwheregoodsandservicescanbepurchasedorsoldThepricethatagoodorserviceissoldisforisdeterminedbythesupplyanddemandforthatparticulargoodorserviceThesupplyofaproductisrepresentedbyasupplycurveascheduleshowingthequantitythatproducersarewillingtoselltheirgoodforateachpriceoveranamountoftimeThequantitysuppliedisdifferentitrepresentstheamountofaproducttheproducersarewillingtosellataspecificpriceThedemandforaproductisdemonstratedthroughademandcurveascheduleshowingthequantityofaproductthatconsumersarewillingbuyateachpriceoveranamountoftimeThequantitydemandedisdifferentitshowstheamountofaproducttheconsumerswillbuyataspecificpriceTheequilibriumisthepointwherethesupplyanddemandcurvesintersectwherebothpartiesaresatisfiedThisequilibriumpointdemonstratesthepriceconsumerswillbuyandproducerswillsellaproductforItalsodemonstratesthequantityofaproductthatconsumerswillbuyandproducerswillsellwherebothgroupsaresatisfiedMarketequilibriumoccurswhenallconsumersandproducersaresatisfiedwithpricesandquantitiesEquilibriumprincipleamarketinequilibriumleavesnounexploitedopportunitiesforindividualsEfficiencyprincipleeconomicefficiencyismaximizedwhentotaleconomicsurplusismaximizedasthepiegrowslargereveryonegetsabiggerpieceChangeinquantitydemandedsuppliedvschangeindemandsupplychangeintheamountpeoplewanttobuysellandChangeinquantityisaresponsetoachangeinpriceresultsinamovementalongthedemandsupplycurveAchangeindemandsupplyisnotaffectedbypricepeoplewillpaymorelessforeveryquantityandresultsinashiftofthedemandsupplycurve23Chapter4MacroeconomicsTheBirdsEyeViewoftheEconomyMacroeconomicPoliciesaregovernmentactionsdesignedtoaffecttheperformanceoftheeconomyasawholeasopposedtopoliciesintendedtoaffecttheperformanceofthemarketforaparticulargoodorservicesuchaslumberorhaircuts41TheMajorMacroeconomicIssuesEconomicGrowthandLivingStandardsWealthyindustrializedcountriessuchasCanadatheUnitedStatesJapanandthecountriesofWesternEuropearecertainlynotfreefrompovertyhungerandhomelessnessthetypicalpersoninthosecountriesenjoysastandardoflivingbetterthanatanyprevioustimeorplaceinhistoryBystandardoflivingwemeanthedegreetowhichpeoplehaveaccesstogoodsandservicesthatmaketheirliveseasierhealthiersaferandmoreenjoyableFigure41p90showstheextentofeconomicgrowthovertimefrom1926to2006In2007theoutputoftheCanadianeconomywasmorethan19timeswhatitwasin1926andmorethan8timesitslevelin1950Figure42p91showstheoutperpersoninCanadasince1926In2007thevalueofpersonalgoodsandservicesconsumedbyatypicalCanadianresidentwasnearly6timesthevalueavailabletoatypicalCanadianresidentbackin1926ProductivityFigure42showshowoutputperemployedworkerhaschangedsince1926Thefigureshowsthatin2007aCanadianworkercouldproduceabout42timesthequantityofgoodsandservicesproducedbyaworkerbackin1926despitethefactthattheworkweekisnowmuchshorterEconomistsdefineaveragelabourproductivityasoutputperemployedworkerRecessionsandExpansionsPronouncedslowdownsineconomicgrowtharecalledrecessionsextraordinarilysevereeconomicslowdownsliketheonethatbeganin1929arecalleddepressionsInCanadamajorrecessionsoccurredin19811982and19901992DuringrecessionseconomicopportunitiesdeclinejobsarehardertofindpeoplewithjobsarelesslikelytogetwageincreasesprofitsarelowerandmorecompaniesgooutofbusinessPeriodsofeconomicgrowtharecalledexpansionsandparticularlystrongexpansionsarecalledboomsDuringanexpansionjobsareeasiertofindmorepeoplegetraisesandpromotionsandmostbusinessesthriveUnemploymentTheunemploymentratethefractionofthelabourforcethatislookingforajobbutcantfindworkisakeyindicatorofthestateofthelabourmarketWhentheunemploymentrateishighworkishardtofindandpeoplewhodohavejobstypicallyfindithardertogetpromotionsorwageincreases
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