Demand and Supply
"Teach a parrot the terms
'supply and demand' and
you've got an economist."
~ Thomas Carlyle
Scottish Writer and Satirist
Markets - institutions that bring
together buyers and sellers.
Goods and services, inputs (fact
Financial Markets and the Economy
The most powerful force
in the universe is
~ Albert Einstein,
Physicist, Smart Guy
Start Up: Financial Markets
Markets in which funds accumulated by
one group are made avai
Aggregate Demand and Aggregate
Wall Street indexes
nine out of the last five
~ Paul Samuelson
Natural Level of the Economy
The level of output when labor is fully
employed (natural level of employmen
1.GDP measures the economy's production of:
a. final goods and services.
b. intermediate goods.
c. consumer goods and services.
d. capital goods.
2.Mallory Trammell is a homemaker. Last week, she was busy with her normal household chores. She is:
a. a mem
Applications of Supply and
I think theres a world market
for about 5 computers.
~ Thomas J. Watson,
Chairman of the Board, IBM
The PC market
Price Floors and Ceilings
A price floor is a minimum
allowable price set above P
The Nature and Creation of Money
The process by which banks
is so simple that the mind is
John Kenneth Galbraith
Anything that serves as a medium of
To an economist,
Your earned income is income
Economics: The Study of Choice
There are no solutions; there are
-Thomas Sowell, American Author and Economist
In the News
What stories in the news involve economics?
1) When talking about aggregate supply, it is necessary to
A) focus on the short run.
B) focus on the long run.
C) distinguish between long-run aggregate supply and short-run aggregate
D) distinguish between long-run full employment and short-term
Confronting Scarcity: Choices in
"The first lesson of economics is
scarcity: there is never enough of
to satisfy all those who want it.
The first lesson of politics is
to ignore the first lesson
Name: _ Date: _
The consumer price index reflects
the changes in the prices of goods and services typically purchased by consumers.
the average level of prices for intermediate goods and services purchased by business.
the median price of a ty
Macroeconomics: The Big Picture
When more and more
are thrown out of work,
30th US President
Understand real gross domestic
product and how it is calculated.
Identify the ph
Monetary Policy and the Fed
"I guess I should warn you, if I turn out
to be particularly clear, you've probably
misunderstood what I've said."
~ Alan Greenspan
Fed Chairman, 1987 - 2006
The Power of the Fed
The Fed sets and carries out
Measuring Total Output and
Exploration is the engine that
drives innovation. Innovation
drives economic growth. So let's
all go exploring.
American oceanographer, marine biologist
Total output is an importa
Government and Fiscal Policy
Government purchases include
All purchases of goods and services by government
Direct production by government agencies.
Government purchases as percent of GDP
decreased, and now a
There are no great limits to
because there are no limits of
human intelligence, imagination,
~ Ronald Reagan
How Important is Growth?
85% complete high
school; 28% have 4