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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.
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Lesson 16: Aggregate Shocks | Unit 1: Instability
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Page: 3 of 21
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- The aggregate market as a tool to analyze the macroeconomy and its adjustments toward equilibrium.
- How aggregate market adjustments are important to the difference between short-run equilibrium and long-run equilibrium.
- That the aggregate market curves--AD, LRAS, and SRAS--are constructed assuming other (ceteris paribus) things remain unchanged.
- Ceteris paribus determinants as the source of business cycle fluctuations away from the long-run, full employment growth trend of the economy.
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ASSUMPTIONS, KEYNESIAN ECONOMICS The macroeconomic study of Keynesian economics relies on three key assumptions--rigid prices, effective demand, and savings-investment determinants. First, rigid or inflexible prices prevent some markets from achieving equilibrium in the short run. Second, effective demand means that consumption expenditures are based on actual income, not full employment or equilibrium income. Lastly, important savings and investment determinants include income, expectations, and other influences beyond the interest rate. These three assumptions imply that the economy can achieve a short-run equilibrium at less than full-employment production.
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GREEN LOGIGUIN
[What's This?]
Today, you are likely to spend a great deal of time at an auction wanting to buy either a coffee cup commemorating the 1960 Presidential election or a how-to book on fixing your computer, with illustrations. Be on the lookout for telephone calls from former employers.
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Approximately three-fourths of the U.S. paper currency in circular contains traces of cocaine.
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"Plans are only good intentions unless they immediately degenerate into hard work." -- Peter Drucker, management consultant
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PSBR
Public Sector Borrowing Requirement
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