ECON 104 Study Guide - Final Guide: Nogales, Sonora, Nogales, Arizona, Aggregate Demand

• School: George Mason University
• Department: Economics
• Course: ECON 104
• Professor: Rustici/ Gillespie

Document Summary

Time and money, the universals of macroeconomic theorizing. Economics in general is concerned with the allocation of resources. All choices are made for the future and all actions take place in time. Considerations of time are associated with production of actions of production. The intertemporal relationships among individual choices in a production economy is the stuff of which macroeconomic theory is made. How the assortment of capital goods must be restructured if that interval is to be shortened or lengthened. Money is a loose joint (say"s law). The looseness of the monetary joint, has allowed for a certain amount of intertemporal discoordination to go unperceived for a period of time. Cyclical unemployment can arise from a discoordinated capital structure. Time recognizes the intertemporal relationship among the different goods and services. It provides an understanding of the economy"s structure of production. So close and yet so different (page 525)