TAILIEUCHUNG - Lecture Principles of economics (Asia Global Edition) - Chapter 21

This chapter identify the four phases of the business cycle; explain the primary characteristics of recessions and expansions; define potential output, measure the output gap, and analyze an economy's position in the business cycle; define the natural rate of unemployment and relate it to cyclical unemployment; apply okun's law to analyze the relationship between the output gap and cyclical unemployment; discuss the differences between how the economy operates in the short run and the long run. | Short-Term Economic Fluctuations Chapter 21 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. Learning Objectives Identify the four phases of the business cycle and explain the primary characteristics of recessions and expansions Use potential output and the output gap to analyze an economy's position in the business cycle Define the natural rate of unemployment and show how it is related to cyclical unemployment Apply Okun's law to analyze the relationship between the output gap and cyclical unemployment Discuss the differences between how the economy operates in the short run and the long run Headlines from The New York Times “Home Sales and Prices Continue to Plummet” “As Jobs Vanish, Motel Rooms Become Home” “Global Stock Markets Plummet” “Energy Prices Surge, and Stocks Fall Again” “Steep Slide in Economy as Unsold Goods Pile Up” “Fed Plans to Inject Another $1 Trillion to Aid Economy” “World Bank Says Global Economy Will Shrink in ‘09” . economy has passed through its worst recession in 25 years Recessions and Expansions Business Cycles are short-term fluctuations in GDP and other variables A recession (or contraction) is a period in which the economy is growing at a rate significantly below normal A period during which real GDP falls for two or more consecutive quarters A period during which real GDP growth is well below normal, even if not negative A variety of economic data are examined A depression is a particularly severe recession Recessions and Expansions A peak is the beginning of a recession High point of the business cycle A trough is the end of a recession Low point of the business cycle An expansion is a period in which the economy is growing at a rate significantly above normal A boom is a strong and long lasting expansion Fluctuations in US Real GDP, 1920-2010 Peak Trough Months U. Rate (high) Change RGDP Next Expansion 8/29 3/33 43 – 50 months 5/37 5/38 12 – 80 2/45 10/45 8 – .

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Market imperfections
• The international economy
• Short term economic fluctuations
• Symptoms of business cycles
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy