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Unformatted text preview: Chapter 10: Page 250 Causes of inflation 1) Demand-pull inflation, 2) Cost-push inflation (labor unions cause this), 3) ?, 4) Hyperinflation, 5) Structural inflation Chapter 8: What is the classical school? For the past 250, weve adopted Then, Ricardo came with concept of taxation. Then, Malthus came up with concept of population (growth). IMPORTANT: John N. Say a French economist, he joined an economics club at Oxford University. He came up with Says Law, which states, Supply creates its own demand. Look at the supply side, not the demand side. Came with assumptions: 1) pure competition exists in the economy (they were wrong), 2) wages and prices are flexible, 3) full employment is a normal way of life Classical school: from 1776 1928...
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This note was uploaded on 09/26/2009 for the course ECON 205 taught by Professor Kamrany during the Spring '07 term at USC.
- Spring '07