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Unformatted text preview: o Firmsmaximizes profit o Governmentmaximize votes o Internationalmaximize profit o When income = spending, economy is in equilibrium o When income < spending, economy is expanding o When income > spending, economy is contracting For every economy, there are two sides: 1. Physical Activities Real Economy 2. Nominal Economy Tax is a leakage from the economy, it contracts the economy....
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This note was uploaded on 03/08/2009 for the course ECON 20091_ECO taught by Professor Mohammadsafarzadeh during the Spring '09 term at USC.
- Spring '09