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The 3-credit course covers the basics of economic theory and policy at the level of the whole economy - the macroeconomic level (e.g. national income, economic growth, employment/unemployment, prices & inflation, exchange rates, monetary and fiscal policy). It is aimed at people not currently specializing in economics at the majors or honours level. You should have already done microeconomics (Econ208 or equivalent): if not, see me immediately for advice.…
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Mark Twain once said, "History doesn't always repeat itself, but sometimes it does rhyme." In other words, Twain is saying that something very similar to the stock market crash of 1929 could occur again, but nothing will be exactly like it. Although many people say that the financial crisis of 2007-2008 was one of the most devastating economic crises in the last 100 years, the stock market crash of 1929 was far worse because the causes, responses, and effects were more serious and prolonged.…
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In The Great Crash 1929, John Kenneth Galbraith considers the significance of the stock market crash of 1929 and the depression which followed. In the introduction, which was included for the 1988 release, he discusses the comparisons between the Great Crash of 1929 and the Crash of 1987. He refers to the date October 19, 1987, as "the most devastating day in the history of financial markets at least since the bursting of the South Sea Bubble." He asks, how many economists and investors were observing to see if the safeguards put in place to stop this kind of crash would work and prevent a repeat of 1929? These protections did appear to work and many believed that another crash, such as the Great Crash of 1929, was impossible given the…
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Price plays a very important role in gasoline among other things. Even though the price of gasoline is not at its all time high, it is still high to most people. However, I do not think it should be as high as it is when the income of the consumers is not going up with the price of it. The demand for gasoline drives the price of it up. In the future there is going to be a demand for the electronic cars, and the price of gasoline is surely going to drop. Theories of supply and demand had their roots in the early 20th cent (Supply and Demand, 2010). Theories of Alfred Marshall, which recognized the role of consumers in determining prices, rather than taking the classical approach of focusing exclusively on the cost for the producer as a…
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Garrison Keillor tells a story in a classic Lake Wobegon episode of his memories of hot summer days working in the garden. He would be outside all day sweating, miserable, and hot, wishing that they could have air conditioning. He also recalls how his mother used to tell him to make the best of his situation because life was what you made it. He took his mother’s words to heart, and passed the time throwing tomatoes at his sister. During the stock market crash of 1929, however, the public and government definitively did not make the best of their situation. In reality, the public overreaction, gigantic loss of money, and failure of the government to react to the stock market crash of 1929 continuously worsened the already falling situation.…
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