ECO105Y1 Chapter 5: Macroeconomics and Microeconomics
Document Summary
The global financial crisis and the great depression. The global financial crisis (the great recession) Housing price bubble banks and financial institutions provide more mortgages more house buyers (demand ) inflated housing prices. When the bubble burst the value of those mortgages plunged worthless asserts and obliged to sell them (selling ) failing assert prices. 1929-1933, the effect lasted for over a decade. Triggered by a stock market bubble that burs in 1929. Reduced the supply of money for consumers and businesses to restore the spending necessary; increasing taxes; put up tariffs break down the international trade. The global financial crisis of 2008-2009, and the great depression of 1929-1933 involved financial bubbles that burst, high unemployment, falling living standards, bankruptcies, as well as government policy mistakes the global economy the combined outcomes of all. Macroeconomics analyses the performance of the whole canadian economy individual and microeconomic choices.
