Limited time offer 20% OFF StudySoup Subscription details

ECON 101 - Class Notes - Week 3

Created by: Sydney Elite Notetaker

ECON 101 - Class Notes - Week 3

School: Saint Martin's University
Department: Engineering
Course: Principles of Economics
Professor: Riley Moore
Term: Fall 2016
Tags: Economics, Macroeconomics, and Microeconomics
Name: Econ. 101 Week 3
Description: These notes go over the end of chapter 2 and some of chapter 3. Breaks down GDP as well as a more in depth view of command vs market systems.
Uploaded: 09/19/2016
This preview shows page 1 of a 2 page document. to view the rest of the content
background image Week 3 9/12   Macroeconomic goals 
­growth 
­jobs/employment 
­Stable prices 
The way that how a country is doing economically before 1980 was to look how the country was 
doing itself. Now look at the economy and how it relates to the rest of the world. 
GDP
(Current)   = C + I + G + X  C­Consumption (household, private sector)  GNP (Previous) I­Investment (Businesses)   
G­Government (public sector) 
X­Net exports (exports­imports=net) 
To measure economies, have to include everything­ How would you compare across countries? 
1931­During great depression, US had negative growth, operating inefficiently  
New way to measure Price x Quantity= Value.    Can compare without physical items  ­Equation is susceptible to inflation because if price goes up quickly will look like positive  sales, even if less people are buying.   Karl Marx­  Opposite ideas of Adam Smith  1864­ Used Darwin's idea to say Economies can evolve. Capitalism was an old and 
broken system. Socialism was the final form.  
In US late 1800’s so much prosperity Socialism ideas did not catch on. No need for central 
“gov’t to control economy.  
1913­ Creation of     IRS  & FED → Bank revised (way to borrow money)  
(Ways for Gov’t        ↳Internal revenue (Taxes) 
To make money) 
Depression 
­Private sector imploded. 
 Banks collapsed → no loans → Businesses laid people off→ People didn’t spend money  
­
Marx  gained footing because empowered the unemployed. Desired gov’t to take care of them  John Maynard Keynes­  1936 saved market gov’t from being thrown out.  ­Thought the way to pull US from depression was to have huge explosion in  private sector, make gov’t part of the equation and employ people (public works)  to get 
economy going again.   
“You are only unemployed if actively seeking work” 
 
Extreme  Middle ground  Extreme  Karl Marx  John Maynard Keynes  Adam Smith  Gov’t should own private 
sector, everyone is seen as 
equal 
Gov’t should step in during 
economic depressions to 
revive private sector 
Laissez Faire barely any 
gov’t involvement, only act as 
referee.   
Depression­  No real definition. Prolonged recession 

This is the end of the preview. Please to view the rest of the content
Join more than 18,000+ college students at Saint Martin's University who use StudySoup to get ahead
2 Pages 7 Views 5 Unlocks
  • Better Grades Guarantee
  • 24/7 Homework help
  • Notes, Study Guides, Flashcards + More!
Join more than 18,000+ college students at Saint Martin's University who use StudySoup to get ahead
School: Saint Martin's University
Department: Engineering
Course: Principles of Economics
Professor: Riley Moore
Term: Fall 2016
Tags: Economics, Macroeconomics, and Microeconomics
Name: Econ. 101 Week 3
Description: These notes go over the end of chapter 2 and some of chapter 3. Breaks down GDP as well as a more in depth view of command vs market systems.
Uploaded: 09/19/2016
2 Pages 7 Views 5 Unlocks
  • Better Grades Guarantee
  • 24/7 Homework help
  • Notes, Study Guides, Flashcards + More!
Join StudySoup for FREE
Get Full Access to SMU - ECN 101 - Class Notes - Week 3
Join with Email
Already have an account? Login here
×
Log in to StudySoup
Get Full Access to SMU - ECN 101 - Class Notes - Week 3

Forgot password? Reset password here

Reset your password

I don't want to reset my password

Need help? Contact support

Need an Account? Is not associated with an account
Sign up
We're here to help

Having trouble accessing your account? Let us help you, contact support at +1(510) 944-1054 or support@studysoup.com

Got it, thanks!
Password Reset Request Sent An email has been sent to the email address associated to your account. Follow the link in the email to reset your password. If you're having trouble finding our email please check your spam folder
Got it, thanks!
Already have an Account? Is already in use
Log in
Incorrect Password The password used to log in with this account is incorrect
Try Again

Forgot password? Reset it here