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July 17, 2018 

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CAPITAL GOOD: A good that is a manufactured (or previously produced) factor of production that is used to manufacture or produce other things. Common examples of capital goods re the factories, buildings, trucks, tools, machinery, and equipment used by businesses in their productive pursuits. The acquisition of capital goods is the primary goal of business investment.

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Lesson 13: Aggregate Demand | Unit 5: Policies Plus Page: 20 of 22

Topic: Business Cycles <=PAGE BACK | PAGE NEXT=>

The consumption, investment, government purchase, and net export determinants cause the aggregate demand curve to shift and lead to macroeconomic instability.
  • This instability is best viewed in terms of business cycles. The effects of business-cycle instability are:
    • Recession. Means higher unemployment rates and related problems.
    • Booming Expansion. Possibility of higher inflation rates and related problems.
Aggregate demand is the prime source of economic instability.

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FALLACY OF PERSONAL ATTACK

The logical fallacy of arguing that something is bad because someone "associated" with the thing is ugly, has a funny nose, drives a foreign car, regularly watches daytime soap operas, or wears outdated clothing. This fallacy of personal attack runs rampant in the political arena. Some politicians promote the notion that only good people propose good policies, while bad people have bad policies. The fact of the matter is that good people propose bad policies and bad people propose good policies.

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Today, you are likely to spend a great deal of time at a garage sale hoping to buy either a wall poster commemorating yesterday or pink cotton balls. Be on the lookout for rusty deck screws.
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In the Middle Ages, pepper was used for bartering, and it was often more valuable and stable in value than gold.
"God grants victory to perseverance. "

-- Simon Bolivar, South American liberator

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