Economics 201 (Baker College Direct Credit)

how it would fit in well with my presentation is the business cycle in chapter 33. The reason behind that is because it dates back to all the way to the nineteenth century and that is around the time period we have.

        In chapter 34 there is a graph that has to with globalization.The graph shows how things cost more in certain countries than other countries.

Emily Ruckle

In chaper 33, they talk about rational expectations.  It is the view that individuals and firms make decisions optimally, using all available information.  This applies to consequentialism because it also holds the idea that people think about all the sides of their decision before the make the actual decision.  They see the good and the bad in their decision before they do it which applies to both consequentialism and rational expectations.

Ashley Mathis

In chapter 33, they talk about rational expectations. It is the view that individiuals and firms make decisions optimally, using all available information. This applies to consequentialism because it also holds the idea that people think about all the sides of their decision before the make the actual decision. They see the good and the bad in their decision before they do it which applies to both consequentialism and rational expectations. 

We are using the Phillips Curve because during Reagans terms the curve was roughly visible. You could see the Phillips curve in both of his terms.

Phillips Curve is an inverse relation between rate of unemployment and rate of inflation in an economy. The lower the rate of unemployment the higher the rate of inflation and the lower the rate of inflation is, the higher the rate of unemployment. This system was questioned in the 1970's. It was questioned when this system reached stagflation. This is when high levels of both unemployment and inflation are reached. Economists no longer use the phillips curve because of this. There are two kinds of ways the phillips curve is used. One was the Keynesian version, the other was the Classical version that Robert E. Lucas JR. had associated with. Philips curve goes with our project because Keyne was one of the people we are researching, also the phillips curve is what we are researching also. 

A Phillips Curve is an inverse relation beween the rate of inflation and the rate of unemployment in an economy. This essentially means that the lower the rate of unemployment, the higher the rate of inflation, and vice versa. When you add the inflation rate to the unemployment rate, you get the economic indicator known as the Misery Index, which assumes that a higher rate of unemployment and worsening inflation create social and economic costs for a country. The properties of the Phillips Curve were questioned in the 1970s, when we experienced what is known as stagflation, which is when a country experiences both high levels of inflation and unemployment at the same time, which according to the Phillips Curve should be impossible. Because of this, most economists no longer use the Phillips Curve in it's original form as it is though to be too simplistic.

We are using the Phillips Curve because during reagans terms the curve was roughly visible. You could see the Phillips curve in both of his terms.

In chapter 33 it relates to my project by saying that Adam Smith's The Wealth of Nation is one of the most influential books on economics. The graph at the bottom of this page shows that with the Keynesian View the slope of the SRAS curves upward. Adam Smith also had the same views as Keyne and the graph would be most likely similar.

Rachelle Reihl

Chapter 33 relates to my project when the state that Adam Smith's The Wealth of Nations is one of the most influential books on economics ever written. The graphs at the bottom of page 889 shows that the slope of the Classical View is vertical, up and down, while the Keynesian View the slope of the SRAS curves upward. This ties into Adam Smith because he believed in the same views as Keyne and the graphs would be similar.

In Chapter 33 there is a graph representing globalization. It shows the rapid movement of large companies moving and taking over more and more countries. More big name companies are invading outside countries and taking root there.

    Adam Smiths book 'The Wealth of Nations' is an influential book in economics along with 'The General Theory' by Keynes. The chapters talk about international trading and money.  Everybody tries to maximize happiness and minimize suffering for the countries in which they live. In other words Utilitarianism. In 1990 Great Britain joined the euro but in 1992 they dropped out because unemployment in Great Britain jumped to 10%. China has kept a fixed exchange rate.  The United States of America switched to Keynes theory during the Great Depression and it did not end the Great Depression but it lead many economists to adopt Keynes's ideas.

Chapter 33 discusses the business cycle in relative to macroeconomics. Our presentation focuses on Austrian School; the belief that economic analysis should begin by considering the purposeful actions of individuals and then proceed to study the social consequences of such actions. The Austrian Business Cycle shares similar theories to the American Business Cycle invented by Wesley Mitchell. For example: excessive bank lending, at too low of an interest rate, disturbs what would otherwise be considered a natural macroeconomic balance between saving and investing. This results in businesses making bad investments which ultimately become unprofitable and lead to recession. 

Chapter 33 discusses the business cycle in relative to macroeconomics.  Austrian School; the belief that economic analysis should begin by considering the purposeful actions of individuals and then proceed to study the social consequences of such actions is what our presentation is about. The Austrian Business Cycle shares similar theories to the American Business Cycle invented by Wesley Mitchell.