|
ANNUAL: A standard 12-month period, or one year, used for reporting economic and financial data. Gross Domestic Product and related measures are noted economic data released annually. Many businesses also provide annual financial reports. Another standard reporting period is the quarter.
Visit the GLOSS*arama
|
|
|
|
Lesson 16: Aggregate Shocks | Unit 1: Instability
|
Page: 2 of 21
|
Our goal is to explain business cycle fluctuations.- The real GDP path the economy would take with long-run equilibrium--at full employment--is the straight, green upward-sloping line.
- The actual real GDP path, the jagged red line, tends to be less smooth.
- The business cycle is the movement above and below the long-run trend.
- When the actual is below the long-run equilibrium line, we get unemployment.
- When the actual is above the long-run equilibrium line, we get inflation.
- Ceteris paribus factors are what create fluctuations away from the long-run trend.
- Aggregate demand determinants are the main cause.
|
|
|
|
|
|
ASYMMETRIC INFORMATION Information is not equally available to everyone. Asymmetric information results because efficient information search inevitably stops short of compete information. Some people obtain more benefits from information than others, are willing to incur higher search costs, and thus end up knowing more. Or they incur lower information search costs and have easier access to the information. In a market, sellers tend to have more information about the good than buyers. Asymmetric information gives rise to adverse selection, moral hazard, and the principal-agent problem. These problems can be lessened through signalling and screening.
Complete Entry | Visit the WEB*pedia |
|
|
GREEN LOGIGUIN [What's This?]
Today, you are likely to spend a great deal of time flipping through mail order catalogs wanting to buy either a T-shirt commemorating the first day of winter or software that won't crash your computer. Be on the lookout for pencil sharpeners with an attitude. Your Complete Scope
This isn't me! What am I?
|
|
In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
|
|
"The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires." -- William Ward ‚ Texas Wesleyan University Administrator
|
|
OSHA Occupational Safety and Health Administration
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|