I. Law of Demand there is an inverse relationship between the price of a good and
the quantity buyers are will to purchase in a defined period > ceteris paribus
Demand curve the relationship between price and quantity demanded.
Why negative slope at a hig
Which of the following is the largest component of the expenditure approach to calculating GDP?
Question 4 options:
A) Net exports (X - M).
B) Government consumption expenditures and gross investment (G).
C) Gross private domestic investment (I).
What are the building blocks of economics?
Neo-classical or better known as traditional economics are based upon the building
blocks of supply and demand, the concept of the market as well as where the
buyers and sellers come to an agreement on what shoul
Chapter 6 Macroeconomics
Business cycle issue
Note a key measure of cycles are the rise and fall of Real GDP (ignores price level)
I. Business Cycle (exhibit 1 p161)
Phases vary in duration and intensity
Peak max; full employment, therefore economy is nea