ECON 2020 Lecture Notes - Lecture 19: Diminishing Returns, Hyperinflation, Business Cycle
Document Summary
Venezuela: president took over oil industry and other industries. Unemployment rate for grads has gone down. Deficit how much you spend vs. how much you earn (nx) Ppf model: what causes a shift (changes in technology/worker productivity/labor force size, what causes a movement along. Comparative/absolute advantage: how comparative advantage impacts trade. Effects of globalization on inflation: likelihood of recession. Currency appreciation and depreciation: what it means, what is it going to do to imports/exports. Natural resource paradox: rent seeking behavior. Macro economic policies: fiscal policies (government spending & taxation, monetary policies (interest rates/money supply) Unemployment: what it"s done in the us/what"s happened in the us, types of unemployment. Frictional, seasonal, cyclical & structural: full employment rate (what the idea is, not the number) Means we"re at essentially full output: full employment rate of unemployment. Cpi: demand pull, cost push (oil shortage, price goes up) Hyperinflation: printing too much money/trying to pay down debt, zimbabwe/germany.
