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January 16, 2018 

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RETAINED EARNINGS: Officially termed undistributed corporate profits, these are corporate profits that are neither paid as corporate profits taxes nor paid to shareholders as dividends. Undistributed corporate profits are important for the derivation of personal income from national income. Because undistributed corporate profits are income that is earned by the shareholders, but not received, it falls in the general category of income earned but not received (IEBNR), and is subtracted from national income in the derivation of personal income.

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Lesson Contents
Unit 1: The Macroeconomy
  • An Economy
  • Macroeconomics
  • Unit 1 Summary
  • Unit 2: Macro Problems
  • The Goals
  • Unemployment
  • Inflation
  • Unit 2 Summary
  • Unit 3: Business Cycles
  • Instability
  • Causes
  • Unit 3 Summary
  • Unit 4: Policies
  • Government
  • Viewpoints
  • Unit 4 Summary
  • Unit 5: Issues
  • Policies
  • Theories
  • Unit 5 Summary
  • Course Home
    Macro Basics

    In lesson, we move into the formal study of macroeconomics, laying the groundwork for lessons to come. In particular, this lesson introduces several important macroeconomics concepts and notions. Among the list of more important notions are the role an economy plays in the study of macroeconomics, the two key macroeconomic problems of inflation and unemployment, how these problems are related business-cycle instability, and economic stabilization policies designed to correct these problems.

    • The first unit of this lesson lays the foundation of for the study of macroeconomics, introducing the nature of an economy and providing a little information about the U.S. economy.
    • In the second unit, we examine some of the more notable macroeconomics problems, especially production, unemployment, and inflation.
    • We then take a look at the importance of business cycles in the macroeconomy, including recent trends in business cycle activity and a few potential business cycle causes.
    • The fourth unit then examines the role that economic policies play in the macroeconomy.
    • The firth unit wraps up this lesson with a few thoughts about the connection between political philosophies, economic policies, and economic theories.

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    RESOURCE PRICE, AGGREGATE SUPPLY DETERMINANT

    One of three categories of aggregate supply determinants assumed constant when the aggregate supply curve is constructed, and which shifts the aggregate supply curve when it changes. An increase in a resource price causes a decrease (leftward shift) of the short-run aggregate supply curve. A decrease in a resource price causes an increase (rightward shift) of the short-run aggregate supply curve. The other two categories of aggregate supply determinants are resource quantity and resource quality. Specific determinants falling into this general category include wages and energy prices. Anything affecting the prices paid for the use of labor, capital, land, and entrepreneurship is also included.

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    APLS

    WHITE GULLIBON
    [What's This?]

    Today, you are likely to spend a great deal of time watching the shopping channel looking to buy either a desktop calendar with all federal and state holidays highlighted or a half-dozen helium filled balloons. Be on the lookout for mail order catalogs with hidden messages.
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    This isn't me! What am I?

    Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
    "Good humor is a tonic for mind and body. It is the best antidote for anxiety and depression. It is a business asset. It attracts and keeps friends. It lightens human burdens. It is the direct route to serenity and contentment."

    -- Grenville Kleiser, Author

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    A nth-order Autoregressive Process
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