We did not meet on our 2 hour class for this week since Prof Darren is not around , but we have continued discussing about Chapter 8- Aggregate Expenditure. Prof highlighted that the sum of Marginal Propensity to Consume and Marginal Propensity to Save is equals to 1. We've look at the deviation of the Planned Investment which is the change in inventories. If the business is doing good, their inventories is starting to decrease making the aggregate expenditure greater than GDP, this time economy is overperforming and there will be too much inflation, there will be a shortage of workers which would make the wages high which will lead to higher prices and this is what we call Recovery or Expansion and the opposite of that will be the Recession. This just solidifies the discussion we have since the start of the Macro topic with regards to the business cycle, if you give it a thought it is really a cycle and repetitive as the economy move along and just differ on its extent. Is it really bad if the economy is overperforming? Will its benefits outweighs it's costs