March 21, 2018 

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COINCIDENT ECONOMIC INDICATOR: One of four economic statistics that tend to move up and down with the expansions and contractions of the business cycle. You can get a pretty good idea of what our economy's doing RIGHT NOW by looking at these. Coincident economic indicators are measurements that move with the aggregate economy. When a contraction starts, these indicators decline. During an expansion. these indicators rise. These indicators, and their siblings, leading economic indicators and lagging economic indicators are compiled by their parents, those pointy-headed economist at National Bureau of Economic Research.

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Lesson 12: Business Cycles | Unit 4: Causes Page: 22 of 26

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  • Why complexity of the economy makes it difficult to identify, without debate or question, THE cause of business cycles.
  • The investment cause of business cycles, based on the volatility of investment, how investment is affected by interest rates, how interest rates change over the business cycle, and the time it takes to produce capital goods.
  • Why the investment cause implies the use of fiscal policy and why pro-government types like this explanation.
  • The politics cause of business cycles, based on politicians seeking re-election, government's ability to control the economy, and voters voting their pocketbooks.
  • Why the politics cause implies the best policy is no policy and why anti-government types like this explanation.

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A perfectly competitive firm produces the profit-maximizing quantity of output that equates marginal revenue and marginal cost. This marginal approach is one of three methods that used to determine the profit-maximizing quantity of output. The other two methods involve the direct analysis of economic profit or a comparison of total revenue and total cost.

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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 galvanized steel storage shelves or a large green chalkboard shaped like the state of Maine. Be on the lookout for the happiest person in the room.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
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