Part 1: Introduction to Economics
Part 2: Microeconomics
Part 3: Macroeconomics

3. How the Economy as a Whole Works

We started by discussing how individuals make decisions and then looked at how people interact with one another. All these decisions and interactions together make up “the economy.” The last three principles concern the workings of the economy as a whole.

Principle 8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services

Principle 9: Prices Rise When the Government Prints Too Much Money

Principle 10: Society Faces a Short-Run Trade-off between Inflation and Unemployment