Biren PatelMacroeconomicsNotes cards 31.Goals of Economicsa.Economic Growthb.Economic Freedomc.Economic Securityd.Economic Efficiencye.Economic Equityf.Economic Stability2.Economic FreedomThe freedom to choose what and how individual’s economic resources are used.3.Economic GrowthIt is an increase or decrease in Gross Domestic Product (GDP) or Gross National Product (GNP) from one period to another. A decrease in GNP or GDP is negative growth.4.Gross Domestic Product (GDP)The value of all goods and services made for the domestic economy.5.Gross National Product (GNP)The value of all goods and services made for the domestic economy and world economies.6.StagflationStagflation is the world of all worlds. The economy is stuck in the worst of all possible worlds. High unemployment, high underemployment and rising prices.
7.Price StabilityGoal is that inflation and deflation should not exist in the economy.8.InflationInflation is defined as constantly rising prices.