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Tuesday, April 24

  1. page Effect of Government Spending on the Economy edited ... Government spending (Fiscal Policy) creates jobs which increases income, and increases demand.…
    ...
    Government spending (Fiscal Policy) creates jobs which increases income, and increases demand. Since there is more demand, more jobs open up because more goods need to be produced, this lowers the unemployment rate. When unemployment is low the inflation rate goes up (Phillips curve). So, when government spending goes up, so does the inflation rate, and when it goes down, the inflation rate follows.
    An increase in government spending (or a reduction in taxes) shifts the aggregate demand curve to the right.
    {image.jpeg}
    John E. Sayre, Alan J. Morris,Principles of Macroeconomics: Sixth Edition (McGraw-Hill Ryerson Ltd., 2009), 390,391.
    (view changes)
    6:17 pm
  2. page Equitable Distribution of Income edited ... Difficulties - if everyone recieves the same, there is no incentive to work hard Stephanie Po…
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    Difficulties - if everyone recieves the same, there is no incentive to work hard
    Stephanie Powers, "Econ 101 Lecture Notes," Accessed April 16, 2012.
    {3.png}
    Stephanie Powers, Econ 101 PowerPoint, Accessed April 16, 2012.

    (view changes)
    5:49 pm

Tuesday, April 17

  1. page Aggregate Demand (Definition and Why Downward Sloping) edited ... 3) Foreign Trade effect prices increase=>export decreases=> imports increase => AE d…
    ...
    3) Foreign Trade effect
    prices increase=>export decreases=> imports increase => AE decreases=? Real GDP decrease
    The aggregate demand curve is downward sloping because of the real balance effect, the
    interest rate effect, and the foreign trade effect. When prices rise, the three effects cause real
    GDP to decrease. When prices fall, the three effects cause real GDP to increase.

    (view changes)
    7:01 am

Monday, April 16

  1. page Causes of Inflation edited ... Import Push - Ex. Oil. If price for oil increases it cost more to transport goods who loses a…
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    Import Push - Ex. Oil. If price for oil increases it cost more to transport goods
    who loses and gains from an unanticipated inflation
    Losers
    Creditors Debtors
    Taxpayers Producers
    ...
    Owners of real assets
    Buyers of future contracts
    Cost of Inflation
    Increase in income inequality
    Less exports and more imports
    shoe leather costs(opportunity cost of holding cash)
    Menu costs (costs to change signage)
    Reduction in investment
    Business cycles

    Stephanie Powers- Class notes, Donald School of Business
    Stephanie Powers-class notes, Red Deer College
    (view changes)
    11:11 pm
  2. page Causes of Inflation edited ... Wage Push - prices increases will caused an inflation Profit Push - (monopolies and oligopoli…
    ...
    Wage Push - prices increases will caused an inflation
    Profit Push - (monopolies and oligopolies) Intentionally reduce supply to drive up prices.
    ...
    to transport goods.goods
    who loses and gains from an unanticipated inflation
    Losers Winners
    Creditors Debtors
    Taxpayers Producers
    ...
    Owners of financial assets-hiding money in mattress Buyers of future contracts
    sellers of future contracts
    Winners
    Debtors
    Government (bracket creep)
    Producers
    Owners of real assets
    Buyers of future contracts

    Stephanie Powers- Class notes, Donald School of Business
    Stephanie Powers-class notes, Red Deer College
    (view changes)
    11:07 pm
  3. page Causes of Inflation edited Causes of Inflation ... Demand Pull- increase Inflation that occurs when the total demand for …
    Causes of Inflation
    ...
    Demand Pull- increaseInflation that occurs when the total demand for goods and services exceed the economy's capacity to produce those goods. Increase in aggregate
    ...
    Push Inflation- inflation caused by an increase in the cost of production or input levels. Decrease in
    Types of Cost Push Inflation
    ...
    Push - when wages go up.prices increases will caused an inflation
    Profit Push - (monopolies and oligopolies) Intentionally reduce supply to drive up prices.
    Import Push - Ex. Oil. If price for oil increases it cost more to transport goods.
    who loses and gains from an unanticipated inflation
    Losers Winners
    Creditors Debtors
    Taxpayers Producers
    People on fixed income Owners of real assets
    Owners of financial assets-hiding money in mattress Buyers of future contracts
    sellers of future contracts

    Stephanie Powers- Class notes, Donald School of Business
    Stephanie Powers-class notes, Red Deer College
    (view changes)
    11:03 pm
  4. page Markets edited ... 2) Factor: Factors of production 3) Financial: Financial Capital ... Exchange: Foreign Cu…
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    2) Factor: Factors of production
    3) Financial: Financial Capital
    ...
    Exchange: Foreign CurrencyCurrency.
    There is a relationship between the product market and factor market,that is the wages is determine by the combination of the households. the price of goods and services is determined by the market.

    Stephanie Powers, "Circular Flow" lecture notes, Accessed April 16, 2012.
    Stephanie Powers, "Circular flow" Lecture notes, Accessed April16,2012
    (view changes)
    10:47 pm
  5. page MPC and MPS edited MPC and MPS ... Consumption function. Slope = change in consumption/ change in income ... …
    MPC and MPS
    ...
    Consumption function.
    Slope = change in consumption/ change in income
    ...
    0.6 cents.
    MPS-

    MPS-
    marginal propensity
    ...
    Savings functions.
    Slope

    Slope
    = change
    ...
    in income
    If slope is equal to 0.2, that means that for every additional dollar of income we save 0.20 cents.
    Stephanie Powers, Class notes, Donald School of Bussiness
    (view changes)
    10:43 pm
  6. page Causes of Inflation edited ... Profit Push - (monopolies and oligopolies) Intentionally reduce supply to drive up prices. Im…
    ...
    Profit Push - (monopolies and oligopolies) Intentionally reduce supply to drive up prices.
    Import Push - Ex. Oil. If price for oil increases it cost more to transport goods.
    Stephanie Powers- Class notes, Donald School of Business
    (view changes)
    10:43 pm
  7. page Causes of Inflation edited Causes of Inflation There are 2 causes of inlfation that come to mind when speaking about this to…
    Causes of Inflation
    There are 2 causes of inlfation that come to mind when speaking about this topic, these 3 causes are economic growth, rising labour costs. Some factors that contribute to economic growth are1. Demand Pull- increase in natural recources,aggregate demand (shift right). An increase in real capital and increasedemand causes higher prices (inflation)
    2. Cost Push Inflation- Decrease
    in technology. Economic growth can cause inflation because if the economy keeps growing everything begins to grow as well as the population, if more people want more products theaggregate supply.(shift left). A decrease in supply causes higher prices will slowly begin(inflation)
    Types of Cost Push Inflation
    Wage Push - when wages go up.
    Profit Push - (monopolies and oligopolies) Intentionally reduce supply
    to rise because people will paydrive up prices.
    Import Push - Ex. Oil. If price
    for these products as the supply begins to decrease causing inflation. Rising labour costs isoil increases it cost more commen sense if companies and buisnesses need to pay there workers more money that means there going to increase the price on the products that they are producing.transport goods.

    (view changes)
    10:35 pm

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