Note_card-3.docx - Biren Patel Macroeconomics Notes cards 3...

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Biren Patel Macroeconomics Notes cards 3 1. Goals of Economics a. Economic Growth b. Economic Freedom c. Economic Security d. Economic Efficiency e. Economic Equity f. Economic Stability 2. Economic Freedom The freedom to choose what and how individual’s economic resources are used. 3. Economic Growth It 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. Stagflation Stagflation 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 Stability Goal is that inflation and deflation should not exist in the economy. 8. Inflation Inflation is defined as constantly rising prices.

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