Macroeconomics Article Summary
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Published: October 24, 2005
Production Possibilities Curve simplifying assumption To show opportunity cost Allocative efficiencies vs. Productive efficiencies Unemployment Investment Cost of the First 20 Bread Cost of the Second bread = 20 steel Cost of the Third Bread = 50 Steel All Allocative in the PPC represents productive Maximum possible output efficiencies Which combination is produced if combination is produced if combination is what society wants then there is Allocative efficiencies. No cost attached to giving up outputs. Investment-Purchase of Capital If Investment increasing later there is more capital in future in future more resources. Resources Markets Circular Flow (Cont.) Flow of good v. Flow of money Chapter 5 pg. 70-78 + 82-87 Functional v Personal income Distribution Saving Total income= Y= C+S+T Poverty Rate in the United States is 12.7
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