Takeaways:
1. Productivity and Growth, these are the goals...the best use of our scarce resources which are normally acheived via prices. As a result we focus on Unemployment and Inflation which INDICATE whethere we are truly becoming more productive. We use fiscal and monetary policy to respond to changes in either.
2. THE fundamental purpose of government is to establish laws and rights that encourage free trade so that individuals become more productive. The government can, for example, improve on current uses of resources when externalities are present or when lack of ownership results in poor outcomes (ie overfishing). In either case the intervention occurs because prices dont actually convey the aggregate (macroeconmic) price of an action.
No reading. Next time we'll watch a video and I'll have updated grades.
1. Productivity and Growth, these are the goals...the best use of our scarce resources which are normally acheived via prices. As a result we focus on Unemployment and Inflation which INDICATE whethere we are truly becoming more productive. We use fiscal and monetary policy to respond to changes in either.
2. THE fundamental purpose of government is to establish laws and rights that encourage free trade so that individuals become more productive. The government can, for example, improve on current uses of resources when externalities are present or when lack of ownership results in poor outcomes (ie overfishing). In either case the intervention occurs because prices dont actually convey the aggregate (macroeconmic) price of an action.
No reading. Next time we'll watch a video and I'll have updated grades.
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