Political Science 2211E Lecture Notes - Lecture 6: Aggregate Demand, Macroeconomics, Deflation

• School: Western University
• Department: Political Science
• Course: Political Science 2211E
• Professor: Adam Harmes

Document Summary

Toda(cid:455)"s topi(cid:272)s: domestic macroeconomics, international macroeconomics, periods of economic history. If the demand for a product goes up, the price of the product will go up. If the supply of a product increases, the price of the product will decrease. Aggregate demand: (cid:862)the total de(cid:373)a(cid:374)d for goods a(cid:374)d ser(cid:448)i(cid:272)es i(cid:374) the e(cid:272)o(cid:374)o(cid:373)(cid:455)(cid:863) Is determined by: the amount of money consumers and firms have to spend, consumer and business confidence. Growth: changes in the size of the national economy, measured through gross domestic product or gdp, gdp, the value of all goods and services produced in a country in a given year. Negative growth: whe(cid:374) gdp shri(cid:374)ks, it"s referred to as (cid:862)(cid:374)egati(cid:448)e gro(cid:449)th(cid:863, 2 quarters of negative growth = recession. Aggregate demand and growth: demand goes up and growth goes up too (gdp increases) If demand goes down then growth will go down too.