Chapter 20 Reflection

     This chapter talked about economic fluctuations and how they are always changing and are very hard to predict. Fluctuations are always happening in the economy and one of the biggest and most recent was in 2008 and 2009 where the unemployment rate jumped by 5.6 percent between 2007 and 2009. This lead to falling incomes for families as well as many unemployed during the depression which didn't help those just graduating since they couldn't get high level jobs and employers were forced to lay off lower level workers. Another big point in this chapter was the aggregate demand which depends on the price levels of consumption, investment, government purchase or exports. This shows the effects of changing prices and how they can affect an economy for the better or worse and help them to thrive or to spiral out of control. The other side that also effects the aggregate demand is the aggregate supply which depends on the labor, capital, natural resources and technology that are being supplied to a country. This also can make or break an economy depending if another country can make goods cheaper as well as if the supplies coming into an economy are too expensive. In the end this chapter shows how easy it is to fluctuate a countries economy with relatively small changes that will either allow for an economy to prosper or to sink like a rock.