[jeff]

Post by Another71.

CHORUS:

It’s the E-C-O to the N – O – M – I- C -S

Better do good on your test

Supply & Demand, that’s the plan

Economic cycles all across the land

VERSE 1:

Yo, let’s talk about supply curve

When an item price increases, supply does for sure

Positive Supply Curve Shift, shift right

The market’s flooded with companies sellin’ all night

Shift left for a negative supply curve shift

Cost of producing an item increases

If gold goes up, less gold watches are made, see

Lower equilibrium GDP

On the demand curve, when the price goes up

Demand goes down, they don’t want that stuff

If demand changes due to somethin’ other than price

A demand shift occurs, ain’t that nice? Yea

VERSE 2:

Equilibrium price

Quantity supplied = quantity demanded, yea that’s right

Optimal production

Marginal revenue = marginal cost, am I gettin’ through?

When we’re talkin’ ‘bout the GDP

Remember, that’s goods & services produced domestically

Even a foreign company with a U.S. factory

But a U.S. company abroad, that don’t get added on

The consumer price index

Gives prices relative to an earlier time, like when you chewed on Chicklets

The GDP deflator

Converts GDP to Real GDP, gettin’ that green, yea

VERSE 3:

The discount rate is the rate the bank gets

When they borrow money from the Fed

The prime rate, well that’s the rate that you’re gonna get

If you’re a customer and they love you the best

If the real interest rate is what you wanted

Remember that’s inflation-adjusted

The risk-free rate

Takes into account certainty of payback on a certain date

Currency, coins, and deposits, M1

Highly liquid assets be M2, we havin’ fun

A tariff is the imported goods tax

The quota is the limit that they got you at, yea

Need more raps? (of course you do): IFRS: King on this Street

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71