Excess Demand:
Quantity demanded is greater than quantity supply (QD>QS), shortage.
Shortage: Consumers cant get the quantities of items they desire.
Price Ceiling: Occurs when the government put a legal limit on how high the price of a product can be.
Ex: Rent Control
Equilibrium:
The point at which the supply curve and the demand curve intersect.
Excess Supply:
Quantity supply is greater than quantity demanded (QS>QD), creates a surplus.
Surplus: producers have inventories they cannot get rid of.
Price Floor: Lowest legal price a commodity can be sold at. Used by the government to prevent prices from becoming too low.
Ex: minimum wage
Business Cycles:
- Expansion
- Peak
- Contraction/Recession
- Trough
- 1 cycle is from trough to trough
- Average cycle is 5 to 7 yrs
- Recessions last about 14 months
- Peaks & troughs are meaningless because we never know we are in one until it's over.
- Trough means the end of recession
- If a recession loses more than 10% of real GDP, then it's a depression.
Your blog was very thourough and I enjoyed the fact that it had videos! This made it easy for me to study as everything was labeled and separated by topics. The examples helped me get a clearer understanding of what the notes were about and where I can see real life examples. Have you thought of adding links to any websites that talk about the topic more in depth? I think that could take your blog to another level!
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