CMA复习笔记（五）
Market structure:
Prefect competition
Monopolistic competition – water system
Wages in monopoly are lower than in competitive markets.
Oligopoly – restaurants
Pure and natural monopoly – oil, steel, cars
Labor unions: its activities may indirectly have a negative effect on nonunion workers:
Macroeconomic
GDP: the total market value of all final goods and services produced within a country.
Inflation:
Types: cost-push, demand-pull
Cost of inflation
Measurement: CPI (general level prices for goods and services rising); WPI (prices in the wholesale level); GDP Deflator (GDP/1+CPI
Aggregate demand & supply:
The aggregate demand curve shows how a change in the overall prices level of goods will change aggregate expenditures on the goods and services produced by an economy. It’s not a market demand curve, and it’s not the sum of all the market demand curves in the economy. It’s all of the expenditures of individual consumers, businesses and governments, as well as the net demand for the economy’s exports.
The aggregate supply shows how much quantity of output an economy will supply at various price levels in the short run. It includes input prices (wages, land and capital inputs, resource prices); productivity, legal and institutional environment.
Prices are flexible changing in the long run and sticky (no changing) in the short run.
Economic growth: As the rate of change in the GDP
PPC: the production possibilities curve shows all the possible combinations of output that a country has, holding all existing input variables constant.
Influence factors: increase in productive resource, increase in the supply of capital, technological advancements, improved education and training, international specialization and trade, demand factors are also necessary for growth.
Business cycles - Recovery, peak, recession, trough
Causes:
Major innovations, major changes in productivity, government creates business cycles by its control of the money supply, fluctuations in real estate values, cyclical changes in the levels of total spending.
