Two Measures of National Product: Goods-Flow and Earning-Flow

Two Measures of National Product: Goods-Flow and Earning-Flow

How do we actually go about measuring GNP? As we will see, and as is illustrated in Figure 6-2 on p. 106, GNP can be measured either as a fl...

Real vs Nominal GNP:"Deflating" GNP by a Price Index

Real vs Nominal GNP:"Deflating" GNP by a Price Index

In defining GNP, we measured the dollar value of goods and services using the measuring rod of market prices for oranges, apples, machines, ...

Gross National Product : The Yardstick of An Economy's Performance

Gross National Product : The Yardstick of An Economy's Performance

What is the gross national product ? It is the name we give to the total dollar value of the goods and entices produced by a nation during a...

The Road Ahead

The Road Ahead

Having gained art overview of the policies and objectives of macroeconomics, along with a preview of the elements of aggregate supply and de...

Economic Policy

Economic Policy

Our brief review of modern economic history high lights some of the crucial forces that impinge upon the macroeconomy. Some of the forces op...

Aggregate Supply and Demand at Work

Aggregate Supply and Demand at Work

    We can use the tools of aggregate supply and demand to understand some of the major events of post-World War II American history-the Vie...

Long-Run vs Short-Run Aggregate Supply

Long-Run vs Short-Run Aggregate Supply

   The major controversies about modern macroeconomics today swirl around the determination and shape of aggregate supply.Some economists,pa...

Aggregate Supply and Demand Curves

Aggregate Supply and Demand Curves

We can deepen our understanding of macroeconomic equilibrium with the help of a familiar set of tools: supply and demand curves. Recall that...

Definitions of Aggregate Supply and Demand

Definitions of Aggregate Supply and Demand

With this overview of the forces operating on the macroeconomy, we can now sketch in a preliminary way how they operate. Figure 5-6 is the k...

How Markets Solve The Basic Economic Problems

How Markets Solve The Basic Economic Problems

In a country like the United States, most economic questions are resolved through the market, so we begin our systematic study there. Who so...

The Law of Dimishing Returns

The Law of Dimishing Returns

We can also use the production-possibility frontier to illustrate one of the most famous economic relationships: the law of diminishing retu...

Uncertainty in Economic Life

Uncertainty in Economic Life

More than a century ago, the French mathematician Laplace thought that, with sufficient data and time for computation, we could see the futu...

OPPORTUNITY COST

OPPORTUNITY COST

Life is full of choices. Because resources are scarce, we are constantly deciding which good we want to buy or which activity we will pursue...

Definition of economic

Definition of economic

on first encountering  economics, you may want a definition. Here are a few that are commonly  heard. Economic is the study of those acti...