Category Archives: Economics

Economics Lessons! This is just a sample. Our Economics lessons combine reading, videos, infographics, and quizzes to ensure concept mastery.

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Gross Domestic Product

Gross Domestic Product (GDP) is a measure of the total economic output a country makes in a given year, and indicates the total size of the economy. Want to learn about how it is calculated? This article will answer that question, and more!

Monetary Policy

The government has two main ways it tries to influence the economy – through Fiscal Policy and Monetary Policy. Montetary policy involves the government directly injecting cash into the economy through government spending.

Inflation

“Inflation” means that the general prices of goods and services goes up from one year to another. There are a few ways to calculate inflation – from a simple “basket of goods” compared over time, to complicated economic models looking across thousands of factors

Government Impact on the Economy

In any society with a market-based economy, the government must: ensure the common defense, promote economic growth, and strive to maintain a just society. All three of these tasks are related to the economy in one way or another, meaning everything the government does will have an impact on the economy.

Time Value of Money

The Time Value of Money is a concept that a dollar in your pocket today is worth more than a dollar tomorrow – because you can use it right away. The time value of money is determined by interest rates and opportunity cost – what else could you be doing with that money?

Interest Rates

Interest rates are a percentage that is used to calculate how much a loan or investment grows over time. A “Nominal” interest rate is just the percentage on the loan – the “Real” rate subtracts expected inflation