Income Inequality and Poverty
The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby
classified as poor.
LOC: The study of economics,
The Theory of Consumer Choice
The theory of consumer choice illustrates that people face tradeoffs, which is one of the Ten Principles of
LOC: Utility and consumer choice
Money Growth and Inflation
The inflation rate is measured as the percentage change in a price index.
LOC: Unemployment and inflation
U.S. prices rose a
Aggregate Demand and Aggregate Supply
According to classical macroeconomic theory, changes in the money supply change nominal but not real
LOC: Aggregate demand and aggregate supply