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January 18, 2019 

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LEADING ECONOMIC INDICATOR: One of eleven economic statistics that tend to move up or down a few months before the expansions and contractions of the business cycle. These leading indicators are -- manufacturers new orders, an index of vendor performance, orders for plant and equipment, Standard & Poor's 500 index of stock prices, new building permits, durable goods manufacturers unfilled orders, the money supply, change in materials prices, average workweek in manufacturing, changes in business and consumer credit, a consumer confidence index, and initial claims for unemployment insurance. Leading indicators indicate what the aggregate economy is likely to do, business-cycle-wise, 3 to 12 months down the road. When leading indicators rise today, then the rest of the economy is likely to rise in the coming year. And when leading indicators decline, then the economy is likely to decline in 3 to 12 months.

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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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    MARGINAL FACTOR COST CURVE, MONOPSONY

    A curve that graphically represents the relation between marginal factor cost incurred by a monopsony for hiring an input and the quantity of input employed. A profit-maximizing monopsony hires the quantity of input found at the intersection of the marginal factor cost curve and marginal revenue product curve. The marginal factor cost curve for a monopsony with market control is positively sloped and lies above the average factor cost curve.

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    GREEN LOGIGUIN
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    Today, you are likely to spend a great deal of time at the confiscated property police auction wanting to buy either a bookshelf that will fit in your closet or a birthday greeting card for your grandfather. Be on the lookout for slow moving vehicles with darkened windows.
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    This isn't me! What am I?

    The penny is the only coin minted by the U.S. government in which the "face" on the head looks to the right. All others face left.
    "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover."

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