ECON 101 Chapter Notes - Chapter 9: National Research Universal Reactor, Business Cycle, Full Employment
Document Summary
Economic growth: is economic growth desirable and sustainable, the antigrowth view, environmental and resource issues, in defense of economic growth, higher standard of living, human imagination can solve environmental and resource issues. Can economic growth survive population decline: as nation industrialize, their economies shift from agriculture to industry, fertility rates fall, decrease in population, each generation smaller that the one before, inverse dependency ratio, social security issues, innovation and productivity. The business cycle: alternating increasing and decreasing in economic activity over time, phases of the business cycle, peak, recession, trough, expansion, business cycle fluctuations, economic shocks, prices are sticky downwards, economic response entails decreases in output and employment. Causation: a first glance: causes of shocks, irregular innovation, productivity changes, monetary factors, political events, financial instability. Cyclical impact: durable goods affected most, capital goods, consumer durables, nondurable consumer goods affected less, services, food and clothing.
