#ECO2307 The higher than expected inflation will shift the Phillip curve right. Conversely, The lower than expected inflation will shift the Phillip curve left.
#ECO2307 The Phillips curve states that in the short run, the trade-off between inflation and unemployment. The policy maker could use high inflation rate to gain the low unemployment rate.
#ECO2307 Multiplier effect: change in government purchasing add to AD but also increase income. The increased income leads to more consumption and higher consumption leads to even more income.
The consequences of 2006-2009 housing market crash are millions of mortgage default, and bank sell foreclosed houses in order to increase the surplus and decrease price pressures.#ECO2307
The decline in manufacturing employment is resulted by the decrease of manufactures and also the less educated, prime workers. Some factors also affect this situation such as opoid use.https://t.co/u27L2Pbf7Y
The trade policy focus on the industry such as aluminum. It intend to drag the trade the trade position of USA from deficit to balance. The reason for doing that is the deficit will result more USA financial capital outflows. https://t.co/FbI0a8u9aC
The unemployment rate of major democratic group decreases, so does labor force participation rate. That is because some industry is developing such as construction and gas drilling.
https://t.co/h1EoK6zgKa
#ECO2307 When a boom occurs in Canada. Canadian become wealthier and then buys more from US. The AD shift right and then the SRAS will draw it back to the original level.
Today, we learned about the circular flow model and the definition of GDP.
I learned about how to calculate the GDP. And the interesting thing is that the total of income and the total of expenditure. We can add up income or expenditure to calculate GDP. #ECO2307