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CIRCULAR FLOW: The continuous movement of production, income, and resources between producers and consumers. This flow moves through product markets as the gross domestic product of our economy and is then the revenue received by the business sector in payment for this production. This stream of revenue then flows through resource markets as payments by businesses for the resources employed in production. The payments received by resource owners, however, is nothing more than the income of the household sector. The resource owners of the household sector use this income to purchase goods and services through the product markets, coming full circle to where we began.

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DEMAND-DRIVEN BUSINESS CYCLES

Business-cycle instability caused by changes in one or more of the four aggregate demand expenditures on gross domestic production--consumption expenditures, investment expenditures, government purchases, and net exports. This is one of two basic types of business cycles--the other being supply-driven business cycles. Demand-driven business cycles tend to be the more common of the two types.

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PURPLE SMARPHIN
[What's This?]

Today, you are likely to spend a great deal of time going from convenience store to convenience store seeking to buy either rechargeable batteries or a rechargeable battery for your computer. Be on the lookout for cardboard boxes.
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One of the largest markets for gold in the United States is the manufacturing of class rings.
"Rowing harder doesn't help if the boat is headed in the wrong direction. "

-- Kenichi Ohmae, management consultant

IRR
Internal Rate of Return
A PEDestrian's Guide
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