ECONOMIC 104 Documents

Showing 1 to 15 of 15

Thinking like an
Economist
Economics as a (dismal)science
The role of assumptions
Modelling
Economics as science
ObservationsTheoriesObservatio
nsTheories
Assumptions
E.g. two countries, two goods
(what? Am I an idiot or
something?)
Models
E.g. A very

The Business Cycles
Aggregate demand Aggregate
Supply model
Understanding of Business
cycles
Recession- A decline in total output
(real GDP) for 2 or more
consecutive quarters
Growth recession- a period of slow
real GDP growth
Depression- a period of prol

Dr. Choon-Shan Lai
SSE 104 review outline
While you should be paying more attention to these topics strategically,
you are responsible for all materials covered in class.
(A good lecture note is the key to success in this course. If you are missing anythi

What do economists do?
Statistics
Median salary (2010) = $89,450 per year
Entry level education = bachelor degree
Source: Bureau of Labor Statistics
What do economists do?
Research and analyze economic issues
E.g. Is NAFTA good for the US economy?
Is Micr

Inflation
What is inflation?
How does inflation affect our
economy?
How to measure inflation?
What is inflation?
Inflation is an increase in the average
level of prices of goods and services
Deflation is a decline in the average
level of prices of go

1
What is unemployment
rate?
Unemployment
rateThe percentage of
people in the
labor force who
do not have a job
but are actively
looking for one
2
Labor force
All persons over age 16 who either
have a job or who are actively
looking for one
Labor particip

Categories of unemployment
1.Technological advance allows companies to
use computers/machines instead of workers
to conduct daily operations.
2.As the US becomes a service-oriented
economy, manufacturing workers are
displaced
3.Some people are waiting at

National Accounting
How to measure our well-being?
How much output is produced?
What is it being used for?
How much income is being
earned?
How much is being spent?
The relationship between
production, income and spending
How to measure our wellbeing?
Mea

Laic
SSE104 EXAM 2 REVIEW SHEET
While you should be paying more attention to these topics strategically,
you are responsible for all relevant materials covered in class and the
text book.
(A good lecture note is the key to success in this course. If you a