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This 1 page Reader was uploaded by Samantha Creamer on Tuesday February 2, 2016. The Reader belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 22 views.
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Date Created: 02/02/16
Macro Class #1 January 20th, 2016 Week 1 Why should we keep unemployment low ● distribute resources more equally ● satisfying work ● confidence in ability Keynes and the Great Depression ● Do free markets if interrupted, then put resources back to work? ● Restore full employment? ● The depression made clear that the answer was NO. ○ income of households, firms ■ spending by households and firms ● output employment (in firms) Income (of household, firms) REPEAT High levels of income equals high level of spen ding which means high level of outs put and high level of output. ● Do free markets if interrupted, then put resources back to work? Keynes: the economy can get stuck at low economic activity, high unemployment. Then it takes an injection of government spending to restore full employment. ● There are serial unemployment rates in the US (due to how we measure it)
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