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EC0N0M1CS

Mankiw, Principles of Economics Ch 2

QuestionAnswer
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
Created by: @ng3l
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