Lecture Notes for Ch. 8
Economics 252h with Araujo at Michigan State University
About this deck
By: Kristine Osentoski
Textbook:
Macroeconomics (6th Edition)
Created: 2008-09-30
Size: 28 flashcards
Views: 2
Textbook:
Macroeconomics (6th Edition)Created: 2008-09-30
Size: 28 flashcards
Views: 2
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Countercyclical
(1 answer)
(1 answer)
goes down in expansions, goes up in recessions
real interest rates
(1 answer)
(1 answer)
acyclical
Persistence
(1 answer)
(1 answer)
once a recession begins, the economy tends to keep contracting for a period of time
Money supply
(1 answer)
(1 answer)
procyclical & leading
Unemployment
(1 answer)
(1 answer)
countercyclical
Government purchases
(1 answer)
(1 answer)
procyclical
Employment
(1 answer)
(1 answer)
procyclical & coincident
Business Fixed Investment
(1 answer)
(1 answer)
strongly procyclical & coincident
Coincident variable
(1 answer)
(1 answer)
peaks & troughs usually happen at the same time as the ones from the business cycle
Real wages
(1 answer)
(1 answer)
mildly procyclical
Acyclical
(1 answer)
(1 answer)
variables that don't display a clear pattern over the business cycle or don't move much
Consumption
(1 answer)
(1 answer)
Procyclical & coincident
Nominal interest rates
(1 answer)
(1 answer)
procyclical & lagging
sometimes displays unusual patterns
(1 answer)
(1 answer)
for example in the 1990-1991 recession unemployment rate continued to climb even after the recession was over
Lucas's
(1 answer)
(1 answer)
"business cycles are all alike"
Aggregate economic activity
(1 answer)
(1 answer)
business cycle refers to fluctuations in the overall economic activity, not only fluctuations of a single variable such as the real GDP
Recurrent but not periodic
(1 answer)
(1 answer)
business cycles occur repeatedly in an economy over time (recurrent), but they don't occur in a regular, predictable way
Expansions & contractions
(1 answer)
(1 answer)
the period of time during which aggregate activity is falling is called contraction or recession, the period of time during which aggregate activity grows is called expansion or boom
Comovement
(1 answer)
(1 answer)
business cycles don't occur in just a few sectors
Stock prices
(1 answer)
(1 answer)
procyclical & leading
Inflation
(1 answer)
(1 answer)
procyclical & lagging
Average labor productivity
(1 answer)
(1 answer)
procyclical & leading
Residential Investment
(1 answer)
(1 answer)
procyclical & leading
Inventory investment
(1 answer)
(1 answer)
procyclical & leading
Lagging variable
(1 answer)
(1 answer)
peaks & troughs occur later than the corresponding peaks & troughs
Procyclical
(1 answer)
(1 answer)
goes up in expansions, goes down in recession
Production
(1 answer)
(1 answer)
procyclical & coincident
leading variable
(1 answer)
(1 answer)
tends to move in advance of aggregate economic activity
About this deck
By: Kristine Osentoski
Textbook: Macroeconomics (6th Edition)
Created: 2008-09-30
Size: 28 flashcards
Views: 2
Textbook:
Macroeconomics (6th Edition)Created: 2008-09-30
Size: 28 flashcards
Views: 2
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
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