ECON 101 Lecture Notes - Lecture 26: Ceteris Paribus, Inverse Relation, Macroeconomics
Document Summary
Economies based on custom or religion association-iscausation fallacy. The incorrect idea that if two variables are associated in time, one must necessarily cause the other behavioral assumption. An assumption that describes the expected behavior of economic decision makers, what motivates them. The buildings, equipment, and human skills used to produce goods and services circular-flow model. A diagram that traces the flow of resources, products, income, and revenue among economic decision makers dependent variable a variable whose value depends on that of the independent variable economic fluctuations. The rise and fall of economic activity relative to the long-term growth trend of the economy; also called business cycles economic theory, or economic model. A simplification of reality used to make predictions about cause and effect in the real world. The study of how people use their scarce resources to satisfy their unlimited wants entrepreneur.
