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EC0N0M1CS
Mankiw, Principles of Economics Ch 2
Question | Answer |
---|---|
circular-flow diagram | a visual model of the economy that shows how dollars flow through markets among households and firms |
macroeconomics | the study of economy-wide phenomena, including inflation, unemployment, and economic growth |
microeconomics | the study of how households and firms make decisions and how they interact in markets |
normative statements | claims that attempt to prescribe how the world should be |
positive statements | claims that attempt to describe the world as it is |
production possibilities frontier | production possibilities frontier |