Book: Yu. Mamedov. Modern economics. Page 2

Inflation is an increase in the general price level. The general rise in prices is combined with uneven, multidirectional movements in prices for different goods.

Cash has the property of immediate, direct exchange for any other asset with zero exchange costs. Cash is a completely liquid asset.

If gold money performed many functions, then paper money could only perform one function - means

Three centuries ago, substitutes for gold appeared in the form of paper money. And throughout this period, paper money truly represented gold, freely exchanging for it. And only in the 70s. XX century a grandiose, inevitable event occurred - money broke its connection with gold, the economy entered the era of paper

For a very long time, money was made of noble metals (gold and silver), which nature, as if specially created for this role. The physical properties of precious metals (homogeneity, strength, intrinsic value) ideally met the requirements for a monetary commodity. But, as soon as gold established itself in the role of money, it turned out that it did not necessarily have to participate in circulation, but could be replaced by any of its representatives.

For almost all of economic history, money has been a commodity.

Every product is a product, but not every product can become a product - for this it must be purchased.

Although economic growth, by increasing the wealth of the country as a whole, expands its capabilities in solving social problems, it is not always accompanied by corresponding progress in the field of human development, but rather, on the contrary, is carried out with increasing economic inequality, infringement of democracy, and destruction of the environment.

Modern economic growth is aimed at the development of human potential, therefore its effectiveness is assessed not only by indicators of population income, but also by such factors as life expectancy, the percentage of literacy among the adult population, and the level of mass accessible education.

The economy experiences periodic fluctuations in price levels, output, and employment. To measure the strength of this wave-like movement, economists use a unit of economic fluctuation - economic

With high inflation, production with the shortest payback periods becomes scarce.

An increase in the price level for domestic goods leads to the fact that countries within the country will prefer cheap imports (exports are also reduced, because foreigners also do not need expensive goods.

A rational income recipient strives to save part of his income and not spend it completely (self-insurance). The freedom of subjects in a market system lies in the fact that no one can be forced to spend money: to seduce u003d - it is possible, but it is impossible to order.

The fundamental difference between macro and microeconomics is that macroeconomics involves the state, which has a unique status: it is the only market subject endowed with the function of an authority, that is, it has the right and power for administrative (non-economic) intervention in the economy.