{"id":45280,"date":"2018-11-02T02:00:29","date_gmt":"2018-11-02T06:00:29","guid":{"rendered":"https:\/\/quotulatiousness.ca\/blog\/?p=45280"},"modified":"2018-10-12T11:06:30","modified_gmt":"2018-10-12T15:06:30","slug":"intro-to-business-fluctuations","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2018\/11\/02\/intro-to-business-fluctuations\/","title":{"rendered":"Intro to Business Fluctuations"},"content":{"rendered":"<p align=\"center\"><iframe loading=\"lazy\" width=\"853\" height=\"480\" src=\"https:\/\/www.youtube.com\/embed\/vnUo82ZCo5s\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/p>\n<blockquote><p><strong>Marginal Revolution University<\/strong><br \/>\n<strong>Published on 11 Apr 2017<\/strong><\/p>\n<p>This wk: Get acquainted with the basics of business fluctuations as we dive back into the final videos of our Macro course.<\/p>\n<p>Next wk: Learn the basics of the aggregate demand-aggregate supply model.<\/p>\n<p>Economic growth doesn\u2019t happen at a steady pace; there are ebbs and flows. Prosperity on the national level depends on a country having good institutions in place. The factors of production \u2013 human capital, physical capital, and ideas \u2013 are also critical. And these variables often change, sometimes drastically.<\/p>\n<p>In the United States, economic growth has averaged at about 3.2% for the past sixty years. But if you Google \u201cUS economic growth FRED,\u201d you\u2019ll quickly see that it\u2019s not a smooth trend up. Instead, there are plenty of peaks and valleys, even though the U.S. has a relatively stable economy. Economists refer to these ups and downs around a country\u2019s long-term GDP growth trend as \u201cbusiness fluctuations.\u201d<\/p>\n<p>\u201cRecessions\u201d are significant and widespread declines in employment and real income. But not only do people become unemployed during a recession, but capital and land often go un- or underused. This suggests that an economy is operating below its potential because resources are being wasted.<\/p>\n<p>Recessions, large or small, are less than ideal states for an economy. We want people and resources well employed to produce more prosperity.<\/p>\n<p>Over the next few videos, we\u2019ll explore the basics of a model of business fluctuations called the aggregate demand-aggregate supply (AD-AS) model. We\u2019ll put the model to use to look at how shocks affect an economy, and what policy can do to minimize the damage. Finally, we\u2019ll apply the model to explain some of the largest economic catastrophes in United States\u2019 history.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Marginal Revolution University Published on 11 Apr 2017 This wk: Get acquainted with the basics of business fluctuations as we dive back into the final videos of our Macro course. Next wk: Learn the basics of the aggregate demand-aggregate supply model. Economic growth doesn\u2019t happen at a steady pace; there are ebbs and flows. Prosperity [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":35193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[1093],"class_list":["post-45280","post","type-post","status-publish","format-standard","hentry","category-economics","tag-macroeconomics"],"jetpack_featured_media_url":"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2016\/06\/favicon.png","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-bMk","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/45280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=45280"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/45280\/revisions"}],"predecessor-version":[{"id":45281,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/45280\/revisions\/45281"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media\/35193"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=45280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=45280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=45280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}