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UNCERTAINTY: The possibility that any number of things could happen in the future. In other words, the future is not known. This should be compared with risk, which is assigning probabilities to alternative possibilities.

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Lesson 8: Market Shocks | Unit 5: Cause and Effect Page: 18 of 20

Topic: Economic Science <=PAGE BACK | PAGE NEXT=>

Economic analysis lets us examine market shocks in a systematic manner.
  • Many things affect the market. Prices and quantities can fall or raise for many different reasons.
  • Ceteris paribus lets us isolate particular changes in the demand and supply determinants to analyze how price and quantity are affected.
  • This market-shock analysis lets us isolate the basic cause and effect principles of economic science.

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MACROECONOMIC PROBLEMS

Undesirable situations that exist in the macroeconomy, largely because one or more of the macroeconomic goals are not satisfactorily attained. The primary problems are unemployment, inflation, and stagnant growth. Macroeconomic theories are designed to explain why these problems emerge and to recommend corrective policies.

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APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time flipping through mail order catalogs wanting to buy either a case for your designer sunglasses or arch supports for your shoes. Be on the lookout for mail order catalogs with hidden messages.
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This isn't me! What am I?

On a typical day, the United States Mint produces over $1 million worth of dimes.
"An idea is never given to you without you being given the power to make it reality."

-- Richard Bach, Author

WAPM
Weak Axiom of Profit Maximization
A PEDestrian's Guide
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