Political Science 2211E Lecture Notes - Lecture 7: Canadian Dollar, Neoliberalism, Disinflation

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

Document Summary

Today"s topics: 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, the total demand for goods and services in the economy 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: If demand goes up : growth will go up, unemployment will go down. If demand goes down : growth will go down, unemployment will go up. Monetary policy: government"s control over interest rates through the central bank, e. g. bank of canada, us federal reserve, use interest rates to regulate demand and maintain balance between inflation and unemployment. Interest rates and demand: lower interest rates make loans cheaper.