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Business Fluctuations&

Aggregate Demand

Chapter _

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Main topics

Economic fluctuations

Features

Theories

Forecasting

Aggregate demand analysis asics

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Business Fluctuations !a"e Been a

#ersistent Feature of Capitalism

Chapter 23

Figure 23-1

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Business cycles

Features economy$%ide fe% years

'ecession

(pecial case) depression

'eco"ery

E*pansion

Deceleration

Theories

E*ogenous "s endogenous

Demand$induced

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A Business Cycle li+e the ,ear

!as -ts (easons

Chapter 23

Figure 23-2

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Business Acti"ity since ././

Chapter 23

Figure 23-3

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A Decline in Aggregate Demand

0eads to an Economic Do%nturn

Chapter 23

Figure 23-4

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Business cycles cont1d2

Forecasting usiness cycles

!o% ha"e %e done3

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!o% !a"e #rofessional

Forecasts #erformed3

Chapter 23

Figure 23-5

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Foundations of aggregate demand

Components

Consumption

-n"estment

4o"ernment

5et e*ports

Do%n$sloping demand cur"e descried

-mportant factors

Can the cycle e a"oided3

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Components of Aggregate

Demand

Chapter 23

Figure 23-6

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Mo"ement along "s6

(hifts of Aggregate Demand

Chapter 23

Figure 23-7

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Chapter 23

Table 23-1