ECON 2002.01 Chapter Notes - Chapter 5: Monetarism, National Bureau Of Economic Research, Informal Sector

• School: Ohio State University
• Department: Economics
• Course: ECON 2002.01
• Professor: Jeffery Buser

Document Summary

Chapter 5 introduction to macroeconomics: different types of economics. Free markets; little government involvement; dominated prior to the great depression. Developed by maynard keynes during the great depression; active government involvement; lead to the development of macroeconomics. Developed by milton friedman; control money supply; influence inflation and interest rates: business cycle. Business cycles are defined as alternating increases and decreases in economic activity. The four phases of the business cycle include the peak, recession (or contraction), trough, and recovery (or expansion). Business cycles vary in intensity, duration, and speed. Business cycles are officially dated by the national bureau of economic research (nber). Method to predict movement in the business cycle: Gdp reflects the final value of goods and services produced. Gdp is a measure of the output produced by resources in the united states. The nipa uses market values, or the prices paid for products, to compute gdp. The nipa accounts focus on market-produced goods and services.