ECON 105 Lecture Notes - Lecture 6: Net Domestic Product, Fixed Investment, Canfor

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Brian Krauth

Document Summary

Policy tools: monetary policy (central banks, fiscal policy (taxes, government spending, government borrowing, microeconomic policy (specific markets and regulation in markets, pollution rules, legalisation rules. Monetarism: recessions caused by bad monetary policy, can be fixed with better monetary policy. Real business cycle theory: recessions caused by markets efficient response to real shocks, best policy is no policy. New keynesian economics: recessions caused by keynesian shocks, but monetary policy is more useful than fiscal policy for responding. International imbalances: goods traded for other goods, this makes it possible for a country to buy more than it sells (trade deficit) or sell more. In reality we trade goods for money than it buys (trade surplus) Cpi = measure of prices in the economy. Statistics canada: canadas nation statistics agency, conducts large national surveys of household firms, and various other participants in the economy, also has access to administrative data such as tax records, health records, ei record, links these data sets.