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Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.
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Transcript of Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.
![Page 1: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/1.jpg)
Lectures in Macroeconomics- Charles W. Upton
A First Look at Business Cycles
Business Failures Counter-Cyclical New Business Starts Pro-Cyclical Unemployment Counter-Cyclical Average Work Week Pro-Cyclical Average Wage Rate Pro-Cyclical Capital Utilization Pro Cyclical GDP Pro-Cyclical
![Page 2: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/2.jpg)
A First Look at Business Cycles
Peaks and Troughs
Peak
Trough
These periods are caused Business Cycles
What Causes Them?And What Can
(or Should) Be Done About
Them?
![Page 3: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/3.jpg)
A First Look at Business Cycles
Counter-Cyclical andPro-Cyclical Indicators
Business Failures Counter-Cyclical New Business Starts Pro-Cyclical Unemployment Counter-Cyclical Average Work Week Pro-Cyclical Average Wage Rate Pro-Cyclical Capital Utilization Pro Cyclical GDP Pro-Cyclical
![Page 4: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/4.jpg)
A First Look at Business Cycles
The Labor Market
SSRSLR
D
H*
w*
![Page 5: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/5.jpg)
A First Look at Business Cycles
A Temporary Demand Decrease
D’
SSRSLR
D
H’ H*
w*
w’
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A First Look at Business Cycles
A Temporary Demand Decrease
D’
SSRSLR
D
H’ H*
w*
w’
Wages Down
Hours of Work Down
![Page 7: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/7.jpg)
A First Look at Business Cycles
A Temporary Demand Decrease
D’
SSRSLR
D
H’ H*
w*
w’
Wages Down
Hours of Work Down
GDP = AKL(1- ) Down
![Page 8: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/8.jpg)
A First Look at Business Cycles
A Temporary Demand Decrease
D’
SSRSLR
D
H’ H*
w*
w’
Wages Down
Hours of Work Down
GDP = AKL(1- ) DownObviously a temporary demand increase will
have the opposite effect
![Page 9: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/9.jpg)
A First Look at Business Cycles
Counter-Cyclical andPro-Cyclical Indicators
Business Failures Counter-Cyclical New Business Starts Pro-Cyclical Unemployment Counter-Cyclical Average Work Week Pro-Cyclical Average Wage Rate Pro-Cyclical Capital Utilization Pro Cyclical GDP Pro-Cyclical
![Page 10: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/10.jpg)
A First Look at Business Cycles
Counter-Cyclical andPro-Cyclical Indicators
Business Failures Counter-Cyclical New Business Starts Pro-Cyclical Unemployment Counter-Cyclical Average Work Week Pro-Cyclical Average Wage Rate Pro-Cyclical Capital Utilization Pro Cyclical GDP Pro-Cyclical
The model seems to fit the facts
![Page 11: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/11.jpg)
A First Look at Business Cycles
A Productivity Increase
SSRSLR
D
H*
w*
![Page 12: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/12.jpg)
A First Look at Business Cycles
A Productivity Increase
D’
SSRSLR
D
H* H’
w*w’
![Page 13: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/13.jpg)
A First Look at Business Cycles
A Productivity Increase
D’
SSRSLR
D
H* H’
w*w’
Wages Up
Hours of Work Up
GDP = AKL(1- ) Up
![Page 14: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/14.jpg)
A First Look at Business Cycles
A Productivity Increase
D’
SSRSLR
D
H* H’
w*w’
![Page 15: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/15.jpg)
A First Look at Business Cycles
Counter-Cyclical andPro-Cyclical Indicators
Business Failures Counter-Cyclical New Business Starts Pro-Cyclical Unemployment Counter-Cyclical Average Work Week Pro-Cyclical Average Wage Rate Pro-Cyclical Capital Utilization Pro Cyclical GDP Pro-Cyclical
Now
Patience
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A First Look at Business Cycles
Getting Going SSR
SLR
D
w
H
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A First Look at Business Cycles
Patience SSR
SLR
D
w
H
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A First Look at Business Cycles
Stimulation SSR
SLR
D
w
H
D`
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A First Look at Business Cycles
Stimulation SSR
SLR
D
w
H
D`While there is
something to this graph, life is not that
simple
![Page 20: Lectures in Macroeconomics- Charles W. Upton A First Look at Business Cycles.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649d815503460f94a65602/html5/thumbnails/20.jpg)
A First Look at Business Cycles
Stimulation SSR
SLR
D
w
H
D`While there is
something to this graph, life is not that
simple
The course is not over
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A First Look at Business Cycles
End
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