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T-NOTE: The abbreviation for Treasury note, which is one kind of government security issued by the U. S. Treasury to obtain the funds used to finance the federal budget deficit. A Treasury note (or T-note) has a maturity length of between one and 10 years.

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Lesson 15: Aggregate Market | Unit 5: Policy Preview Page: 20 of 22

Topic: Time <=PAGE BACK | PAGE NEXT=>

It takes time to move the economy from short run equilibrium to long run equilibrium.

Two options:

  • Wait for self-correcting mechanism --> A short-run imbalance in the labor market eventually triggers the steps that move the economy to full-employment production and long-run equilibrium.
  • Take immediate steps --> Induced shifts in the AD, SRAS, LRAS curves that would, presumably reach full employment faster than the self-correcting mechanism.

The critical questions remains:

  • How much time is needed to adjust from the short run to the long run?

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INDEX OF CONSUMER SENTIMENT

A measure of consumer attitudes, preferences, and expectations concerning the state of the economy and business-cycle conditions that is compiled each month by the Survey Research Center at the University of Michigan. The Index of Consumer Sentiment is one of two primary measures of consumer attitudes. The other is the Consumer Confidence Index developed by The Conference Board.

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Today, you are likely to spend a great deal of time searching for a specialty store hoping to buy either a video game player or an AC adapter that won't fry your computer. Be on the lookout for telephone calls from former employers.
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In the early 1900s around 300 automobile companies operated in the United States.
"It is not fair to ask of others what you are unwilling to do yourself. "

-- Eleanor Roosevelt, diplomat, activist

EBC
Electronic Business Communications
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