ECON 252 1 - Ten Principles

Ability to produce goods and services large

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Unformatted text preview: lly and prices were climbing each hour, the 100 trillion bill scarcely bought a cart of groceries. (Source: NDTV) 19 How the Economy as a Whole Works Principle 10: Society faces a short-run trade-off between inflaMon and unemployment Short-run effects of monetary injecMons: SMmulates - overall level of spending Higher demand for goods and services Firms raise prices; hire more workers; produce more goods and services Lower unemployment Short-run tradeoff between inflaMon and unemployment 20 How the Economy as a Whole Works Principle 10: Society faces a short-run trade-off between inflaMon and unemployment Short-run trade-off between unemployment and inflaMon Key role analysis of business cycle Business cycle FluctuaMons in economic acMvity Employment ProducMon 21...
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This note was uploaded on 05/02/2012 for the course ECON 252 taught by Professor Robertholand during the Spring '08 term at Purdue University.

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