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GOALS: Five basic conditions of the economy that are generally desired by society. They are typically divided into macro goals (full employment, stability and growth) and micro goals (efficiency and equity).

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EQUILIBRIUM, LONG-RUN AGGREGATE MARKET

The state of equilibrium that exists in the long-run aggregate market when real aggregate expenditures are equal to full-employment real production with no imbalances to induce changes in the price level or real production. The opposing forces of aggregate demand (the buyers) and long-run aggregate supply (the sellers) exactly offset each other. At the existing price level, the four macroeconomic sectors (household, business, government, and foreign) purchase all of the real production that they seek and producers sell all of the real production that they have.

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APLS

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Today, you are likely to spend a great deal of time strolling through a department store trying to buy either a rechargeable battery for your cell phone or a T-shirt commemorating the 2000 Olympics. Be on the lookout for high interest rates.
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The Dow Jones family of stock market price indexes began with a simple average of 11 stock prices in 1884.
"One worthwhile task carried to a successful conclusion is worth half-a-hundred half-finished tasks. "

-- Malcolm S. Forbes, publisher

LRAC
Long Run Average Cost
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