Trade Cycles

Trade Cycles The argument is something like this: Most of the business is done with burrowed muney. When business prospects are good, the banks freely extend credit facilities. Assured of cheap and easy credit facilities, the businessmen go on expanding their...

TRADE CYCLES

TRADE CYCLES The world has registered remarkable economic progress especially during the last 150 years. But it would be wrong to think that this economic progress has been a . steady upward swing and a continuous movement forward. On the other hand. every businessman...

A. CONSUMPTION AND SAVING

A. CONSUMPTION AND SAVING This section considers consumption and saving I behavior, beginning with individual spending patterns and then looking at aggregate consumption behavior, Recall from Chapter 21 that consumption (or, more precisely, personal...

ACCOUNTING ASSESSMENT

ACCOUNTING ASSESSMENT This chapter has examined the war economists measure national output and the overall price “level.Having reviewed the measurement of national output and analyzed the shortcomings of the GDP, what should we conclude about the adequacy of our...

The Producer Price Index (PPI).

The Producer Price Index (PPI). This index, dating from 1890, is the oldest” continuous statistical series published by the BLS. It measures the level of prices at’ the wholesale or producer stage. It is based on approximately 3400 prices. including...

GDP Deflator

GDP Deflator. Another, widely used price index IS the GDP deflator, which we met earlier in this chapter. The GDP deflator is the price of all goods and services produced in the country (consumption, investment, government purchases, and net exports)- rather than of a...