Friday, March 4, 2016

School of Economics Unit 3

  • Competition is good
  • Believe in the "invisible hand"
  • In long run, economy will balance at full employment
  • Economy always close to or at full employment
  • Support "trickle down effect" (help rich then poor)

  • Competition is forward
  • AD is the key NOT AS
  • Leaks and savings cause recessions
  • "ratchet effects" and sticky wages block say's law
  • In the long run, we are dead.

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