Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions

Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions

Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply

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 In some years normal growth does not occur, indicating a recession. A recession is a period of declining real incomes, and rising. A depression is a severe recession.

 Economic fluctuations are irregular and unpredictable. Fluctuations in the economy are often called the business cycle. These fluctuations do not follow regular or easily predictable patterns

 Most macroeconomic variables fluctuate together. Most macroeconomic variables that measure some type of income or production fluctuate closely together. Although many macroeconomic variables fluctuate together, they fluctuate by different accounts……………………………

5 slides

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