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Strategies & Market Trends : US Economic Trend Analysis

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To: gpowell who wrote (4)8/4/2005 6:04:02 PM
From: gpowellRead Replies (1) of 97
 
Capital, Savings, Investment, and the flow of wealth.

Economic fluctuations can be defined as a significant deviation from the expected rate of growth of wealth. Wealth, itself, is defined here as the degree to which wants and needs are satisfied and, to the extent that material goods and services satisfies these wants and needs, wealth is synonymous with the stock of goods. Note, that assets are not wealth per se, but rather constitute wealth only so far as they can be exchanged for goods and services. Wealth ultimately is a subjective quantity and can (does) fluctuate with changing preferences. In fact, it is a rare fluctuation that is initiated by a shock to the productive capacity of a society. It is more common for fluctuations to be the result of a discoordination between producer’s planned output with consumers preferred consumption pattern.
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