Econ 201 03
Macro Journal 1
11 October, 2016
1. Current macro events.
a. The current annualized growth rate measures the mean of an investment over a
period of time but not lasting longer than a year. It is currently 1.1-1.2%.
1. Describe some of the trade-offs faced by each of the following
a. A family deciding whether to buy a new car
A family deciding whether to buy a new car faces a tradeoff between the cost of the
car and other things they might want to buy. For example, b
What is Economics?
Economics: the study of how society makes decisions with scarce
How people decide what to buy
How much to work, save, and spend
How firms decide how much to produce, hire, and invest
How society decided to divid
FRAMINGHAM STATE COLLEGE
PRINCIPLES OF MICROECONOMICS
PROBLEM SET NUMBER 2
My Name is? _
Text Chapter 2: Page 34
Draw a circular-flow diagram.
Identify the parts of the model that Correspond to the flow of goods and services and the flow of
Chapter 3: National Income
How much do firms in the economy
produce? What determines a nations
Who gets the income?
Who buys the output of an economy?
What equilibrates the demand for and
supply of goods and services?
Production of Goods