The masses believe that economics is all about money. It's not. It's just as much about behavior. It's the study of how people spend their time and how they divvy up resources and how they make the decisions that they make. It's about studying how people make stuff, use stuff, and move stuff around...but it's also about money, at least to the extent that money equates to wealth and material prosperity.
There are two main branches of economics: macroeconomics, which looks at how the principles of econ work on a large scale, nations, and societies and the like...and microeconomics, which looks at smaller-scale applications. Like how you decide whether to pay up for Red Lobster, or just heat up the fish sticks that got stuck to the bottom of the freezer.
So yeah...macroeconomics is the big stuff. The national economy. Global trade. Interstellar currency exchange. Total aggregate demand and supply as it relates to inflation, gross domestic product, national income, interest rates, unemployment, and all kinds of changes to price levels and liquidity.
Micro is all about the individual corporation, either small or big businesses...or families and individuals.
And by the way, those recording devices the government has implanted in your brain? Yeah…you hope those are microchips, and not, um…macrochips. Much harder to remove.
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Finance: What is economic cyclicality ("...13778 Views
Finance allah shmoop What is economic cyclicality All right Well
if you looked at the history of growth and decline
in the u s economy you think it was run
by a bunch of knuckleheads Meat would poop and poop
all in congress Now surprisingly o r maybe not In
fact economic cyclicality is a reflection of resource glut and
then scarcity and the willingness of buyers Teo you know
buy stuff that is when times were good consumers and
businesses by things hire workers consume commodities at office space
and factories until there is a shift in tastes and
sentiment You know like the horse industry before henry ford
came along anyway Sometimes the shift that triggers an economic
cycle comes from the government like when times air too
good there's usually rampant inflation People in companies will simply
choose to just pay up the extra two bucks a
foot to a rent office space The company can pass
on that extra cost by raising its prices to customers
from eighty dollars a year to ninety dollars and nobody
will notice until they do Yeah the government wanted desperately
to cool inflation in the nineteen seventies so the fed
raised short term borrowing rate costs dramatically from somewhere in
the three to four percent range to closer to like
ten percent And the cost of renting money became so
expensive And because companies were highly leveraged borrowing money to
build factories and hire workers and expand that well then
everything contracted with leverage right So they had all this
debt and revenues went down They still to pay the
dead and well that was a bad scene So inflation
was contained at the cost of a vastly cooler economy
So things contract then like a scared turtle or a
you know like when it do jumps in a cold
ocean and all right But then eventually one brave alligator
emerges to see if it concrete's back up under the
top of the food chain and eat some chickens or
dear Whatever alligators eat what do they eat anyway And
the consumer starts buying things adding risk rever been reducing
it and the cycle takes off again gets picture You
know it's the circle the circle of life round and
round It goes where it stops Well actually we do 00:02:15.523 --> [endTime] know Circle of economy
