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CIO: The abbreviation for the Congress of Industrial Organizations, which was originally a collection of industrial unions established due to a rift among AFL members in 1938, this is now one half of the umbrella organization for labor unions in the United States (the CIO part of AFL-CIO). Industrial unions included in the CIO, were originally part of the AFL. However, because the AFL primarily represented skilled workers in craft unions, a rift among AFL members developed in 1938, resulting in the creation of the CIO. This rift was closed in 1955, when both joined together to form the AFL-CIO, which is the primary advocate for workers and labor unions in the United States.

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Lesson 16: Aggregate Shocks | Unit 2: Extension Page: 4 of 21

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

Before getting to the graphs, here are four specific real-world-type issues to illustrate the direction that we're headed with our analysis of instability:
  • Increases in physical wealth, especially consumer durable goods and capital investment, which affect aggregate demand.
  • Changes in monetary policy that affect interest rates, which affect aggregate demand expenditures on durable goods and capital.
  • Technological advances that improve long-run and short-run aggregate supply.
  • Changes in wages and production costs that affect short-run aggregate supply.

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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with the thing is ugly, has a funny nose, drives a foreign car, regularly watches daytime soap operas, or wears outdated clothing.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 driving to a factory outlet seeking to buy either a New York Yankees baseball cap or a solid oak entertainment center. Be on the lookout for letters from the Internal Revenue Service.
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Helping spur the U.S. industrial revolution, Thomas Edison patented nearly 1300 inventions, 300 of which came out of his Menlo Park "invention factory" during a four-year period.
"Far and away the best prize that life has to offer is the chance to work hard at work worth doing."

-- Theodore Roosevelt, 26th US president

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