The Business Cycle

Quiz Chapters 6-7

Questions to focus on:

  1. What is the business cycle?
  2. What is the macro-economist’s role in terms of the business cycle?
  3. What impact do the different stages have on aggregate supply and demand?

Additional Practice and Review:

Read Chapter 10

Review the “Check Your understanding Questions” – you should be able to answer them from your notes

Background Reading:

The charts every Canadian should be watching

Utility Theory and Government Interventions

Questions you should be able to answer:

What are utils?

How does total utility differ from marginal utility?

Can you illustrate total and marginal utility using graphs?

What is the paradox of value?

Applications of Supply and Demand -Class Discussion:

If markets can find equilibrium in supply and demand and allocate resources efficiently- why and how do governments intervene extensively in markets? Should governments intervene in markets?

Tools Governments Use:

Ceiling Prices

Floor Prices

Subsidies and Quotas

 

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