Using a
KWL-S chart, state under the letter K all you know about the impact of economic
fluctuations on the economy’s real output and price level in both the short run
and long run. Under the letter W, think up questions to show what you want to
know about the specific learning objective. After reading the assigned pages
state what you learned. Finally, if you still have questions unanswered; write
these questions under the letter S.
Repeat the
KWL-S method for the #s 2-4 specific learning objectives.
1. K-I unfortunately do not know much about the impact of economic
fluctuations on the economy’s real output and price level in both the short run
and the long run. What I can predict however is the price level in the short
run of a good or services is always important. If the price level is too high,
consumers will not buy from the producers. If the price is too low, the
consumers will be happy, but the producers will not make profit.
2. W- What would happen to the economy if short and long run effects
never came into effect? How long do recessions last, what can we do to avoid
getting into a new one? Why are the four components to GDP so important? Is
there a way we can keep the economy always up flourishing with money?
3. L- GDP has four components. The federal government knows
exactly when the economy will go into a recession. Recession isn’t necessarily
always a bad thing, some business use it as a thinking period and time to think
whether to reduce production, cut prices, close stores, or other facilities, or
lay off workers. Each business cycle is different, not one is the same, ever.
4. S- I understand everything from the reading perfectly.
Self-explanatory, the material makes a lot of sense. It does not leave you
confused at all.
