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OVEREMPLOYMENT: The condition in which resources are more actively engaged in the production of goods and services than they are willing and able to at current prices. This condition is most important for short-run macroeconomic activity and short-run aggregate market analysis. In particular, overemployment is a key reason for the positive slope of the short-run aggregate supply curve. Overemployment is a primary reason the macroeconomy is able to produce MORE than full-employment production in the short run. Another reason is natural unemployment.

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Menu of Lessons
A. Introduction
  • Economic Basics
  • Economic Science
  • Scarcity
  • Production Possibilities

  • B. The Market
  • Demand
  • Supply
  • Market
  • Market Shocks

  • C. The Macroeconomy
  • Macro Basics
  • Gross Domestic Product
  • Circular Flow
  • Business Cycle

  • D. The Aggregate Market
  • Aggregate Demand
  • Aggregate Supply
  • Equilibrium
  • Aggregate Shocks

  • E. Money and Banking
  • Money
  • Banking
  • Money Creation
  • Federal Reserve System

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    Macroeconomics

    Introductory Macroeconomics is the study of the aggregate economy, including the topics of inflation, unemployment, business cycles, gross domestic product, money, fiscal policy, and monetary policy.

    To access a given lesson, click on the corresponding link in the Menu of Lessons presented to the right.

    AMERICAN ECONOMIC ASSOCIATION

    A formal organization of professional economists that promotes economic research, organizes annual meetings and conferences, and maintains a list of publications in several economics subjects. The American Economic Association (AEA) was originally organized by a small group interested in economics at a meeting in 1888 in Saratoga, New York. However, as interest in the subject grew, it officially incorporated in 1923. Although the AEA contained only a small number of members in the beginning, today the membership is approximately 18,000. In addition, about 4,600 libraries, institutions, and firms subscribe to the quarterly publications of the AEA.

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    Today, you are likely to spend a great deal of time at a flea market hoping to buy either a birthday greeting card for your grandmother or a coffee cup commemorating yesterday. Be on the lookout for vindictive digital clocks with revenge on their minds.
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    The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
    "Experience keeps a dear school, but fools will learn in no other. "

    -- Benjamin Franklin

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