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Mark Lorenzo

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2023-06-06 19:49:43 -

Beyond GDP: other ways to measure the economy
Key points Gross national product, or GNP, includes what is produced domestically and what is produced by domestic labor and business abroad in a year. National income includes all income earned: wages, profits, rent, and profit income. Net national product, or NNP, is GNP minus depreciation. Depreciation is the process by which capital ages...

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Mark Lorenzo

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2023-03-13 20:40:21 -

Macroeconomic perspectives on demand and supply
Key points Keynes’ Law states that demand creates its own supply. Say’s law states that supply creates its own demand. Many mainstream economists take a Keynesian perspective—emphasizing the importance of aggregate demand—for the short run and a neoclassical perspective—emphasizing the importance of aggregate supply—for the...

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Mark Lorenzo

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2023-03-27 19:35:59 -

Measuring the size of the economy: gross domestic product
Key points The size of a nation’s economy is commonly expressed as its gross domestic product, or GDP, which measures the value of the output of all goods and services produced within the country in a year. *GDP is measured by taking the quantities of all final goods and services produced and sold in markets, multiplying them by...

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Mark Lorenzo

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2023-03-10 20:43:28 -

The expenditure-output, or Keynesian cross, model
Key points The expenditure-output model, or Keynesian cross diagram, shows how the level of aggregate expenditure varies with the level of economic output. The equilibrium in the diagram occurs where the aggregate expenditure line crosses the 45-degree line, which represents the set of points where aggregate expenditure in the economy is equal to output, or national income....

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Mark Lorenzo

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2023-02-07 17:15:56 -

Types of market-oriented environmental tools
Key points The three main categories of market-oriented environmental policies are pollution charges, marketable permits, and better-defined property rights. A marketable permit program is a program in which a city or state government issues permits allowing only a certain quantity of pollution. These permits to pollute can be sold or given to firms free....

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Leonard Pokrovski

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2026-01-26 17:32:11 -

What Are the Basic Principles of Economics?
What Are the Basic Principles of Economics?Scarcity, Supply and Demand, Opportunity Cost, and Trade-Offs Economics is the study of how individuals, businesses, and societies make choices when resources are limited. At its core, economics is not just about money or markets; it is about decision-making in a world where we cannot have everything we want. To understand how economies function,...

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