Post 8: Malcolm Gladwell

Malcolm Gladwell is a genious.  I like his idea of  diving each product type/flavor rather than just keeping each product type as in product line. 

Letter to Editor: GDP

Dear Editor,

I feel that using GDP is an inefficient and innacurate way to calculate all of the money made in America.  The National Net Product (NNP) is a more accurate way to calculate the annual amount of money made in the United States. The NNP is the best option because instead of accounting for only gross domestic product, it accounts for net product.  This allows for indirect taxes on production to be factored in as well.

Consumption is the total of all consumer spending in the country.

Investment accounts for the amount businesses spend on capital.

Government spending is the total of all government spending.

Net Exports is the difference between gross imports and gross exports.

Calculating GDP:


1. Add all the money spent in the country. That’s done by summing consumption, investment, government spending and net exports.


2. Add all the income received by producers in the country.


3. Add the market value of all goods and services produced in the country.

Macroeconomics Visual Guide

React to Reading: Macroeconomics

I think that Macroeconomics will display economics on a larger scale. For example, world Macroeconomics will show the economy of the world in a more broad light. With Macroeconomics economists are able to better study economic changes and how they will effect economies on a larger scale scale.  They will be able to better predict economic changes domestically as well as worldy.

"The 10 Things"

1. The underground economy consists of both reported and unreported illegal activities.
2. A set of statistics that allows economists to compare prices over time is known as a Price Index.
3. The output-expenditure model is used to compute GDP
4.  War is an external factor that can affect the business cycle
5. Periods of expansion will inevitably hit a trough
6. The Business cycle is divided into six stages/phases
7. Business Cycles are flunctuations in a market system's economic activity
8. Since the mid-1960s, APD has lowered
9. The Capital-To-Labor Ratio is the amount of capital stock per worker
10. Oil is an important natural resource imported by the United States.

"My Humps" Video

I thought the "My Humps" economics video was really funny.  Not only was it funny but it presented accurate information on the business cycle and how it works.  I learned a lot from the video, and it helped to reinforce information we learned about the business cycle in class.