How the Economy As A Whole Works

How the Economy As A Whole Works - TenPrinciplesOfEconomics...

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Ten Principles Of Economics 00:51 How the Economy As A Whole Works A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services Productivity The quantity of goods and services produced from each unit of labor input Explains why almost all variation in living standards is attributable to differences in countries productivity Nations with high productivity high living standards Nations with low productivity low living standards The growth rate of a nation’s productivity determines of its average income Productivity and living standards To raise the living standards first need to make sure that the productivity is on the rise Prices Rise When The Government Prints Too Much Money Inflation An increase in the overall level of prices in the economy Because inflation imposes various costs on society, keeping inflation low is a world-wide goal What causes inflation The growth in the quantity in money More money less value No growth in quantity in money
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This note was uploaded on 11/09/2011 for the course ECON-E 201 taught by Professor Olson during the Spring '10 term at Indiana.

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How the Economy As A Whole Works - TenPrinciplesOfEconomics...

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