About This Chapter
The Business Cycle & Economics - Chapter Summary
This fun and engaging examination of the business cycle and economics ensures you understand economic fluctuations, market failure, macroeconomic equilibrium and much more. Explore the entertaining lessons from home or on-the-go using any computer or mobile device to learn about these topics or refresh your knowledge. Expand your understanding or clarify details you don't fully comprehend by sending lesson topic questions to our experts. At any time, feel free to test your grasp of this chapter by taking multiple-choice quizzes and a practice exam. When you're finished, you will be ready to do the following:
- Compare and contrast the Keynesian classical models of the economy
- Discuss the Keynesian Revolution as it relates to fiscal policy
- Define the dominant model used to explain economic fluctuations
- Differentiate between aggregate supply and aggregate demand
- Explain what happens to an economy at equilibrium in the long run and short run
- Describe the macroeconomic models that can face failure
- Share the definition and causes of market failure
1. The Keynesian Model and the Classical Model of the Economy
Economists use two basic models to describe economic growth. In this lesson, you'll find out more about each one of these models using real-world examples. So buckle up your seatbelts!
2. Fiscal Policy: The Keynesian Revolution
In this lesson, you'll learn how the government uses stabilization policy to smooth out the ups and downs of the business cycles. In stark opposition to the Classical approach, this Keynesian approach favors taking immediate action to stabilize a troubled economy.
3. Economic Fluctuations: Definition & Model
Economies go up, and economies go down. In this lesson, you'll learn about economic fluctuations, including what they are as well as look at the dominant model.
4. Understanding Aggregate Supply & Demand
In this lesson, we explore aggregate supply and aggregate demand. In addition, we discover how economists represent these terms on a graph, using the AS/AD model.
5. Macroeconomic Equilibrium: Definition, Short Run & Long Run
This lesson will take a look at what happens to an economy at equilibrium in the short run and the long run. We'll take a look at some graphs of recessionary and inflationary gaps, and discuss what producers do in reaction to economic changes.
6. Market Failure: Definition & Causes
When the market for a given good or service fails to efficiently allocate the resources and utility of that market, it's called market failure. In this lesson, we'll explore some of the main reasons for market failure.
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Other chapters within the UExcel Introduction to Macroeconomics: Study Guide & Test Prep course
- Fundamental Concepts of Macroeconomics
- Government Failure in Macroeconomics
- Demand, Supply & the Economic Market
- Role of Government in Macroeconomics
- National Income Accounting Overview
- Unemployment & the Economy
- Basic Concepts of Inflation
- Measurements of Inflation
- Aggregate Demand in Economics
- Fiscal Policy in Economics
- Budgets & National Debt
- Understanding Monetary Policy
- Fundamentals of Money
- Understanding the Federal Reserve System
- Supply-Side Policy & Policy Comparisons
- UExcel Introduction to Macroeconomics Flashcards