PSYC 1010 Study Guide - Final Guide: Output Gap, Business Cycle

• School: York University
• Department: Psychology
• Course: PSYC 1010
• Professor: Myriam Mongrain

Document Summary

Macroeconomics chapter 19 a first look at macroeconomics. Origins and issues of macroeconomics: started in the 1750s but modern economics didn"t emerge until the great. Depression (1929-1939: 20% of the labour force was unemployed, decade of high unemployment and stagnant production throughout the world economy, short-term vs. long term goals. Keynes"s theory depression and high unemployment result from insufficient private spending and to cure these problems, the government must increase its spending short-term. Long-term problems will return inflation and slow economic growth, lower long-term growth rate, economy creates fewer jobs. Discouraged worker = person who does not have a job, is available for work, and is willing to work but who has given up the effort to find work. Lost production and incomes loss of job loss of income + production. Lost human capital can permanently damage a person"s job prospects.