Understanding the quantity theory of money

Note: This is post #106 in a weekly video series on basic economics. The quantity theory of money states that there is a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. Continue Reading...

How do we measure inflation?

Note: This is post #105 in a weekly video series on basic economics. Inflation is an average rise in prices. But how exactly is this average rise in prices measured? In this video by Marginal Revolution University, Alex Tabarrok explains how inflation in the United States can be measured using the Bureau of Labor Statistics’ Consumer Price Index (CPI)—a weighted average of the price increases. Continue Reading...

How hyperinflation can make you a trillionaire

Note: This is post #104 in a weekly video series on basic economics. Imagine having to pay $417.00 per sheet of toilet paper. That actually happened in Zimbabwe. As Alex Tabarrok notes, around 2000, Robert Mugabe, the President of Zimbabwe, was in need of cash to bribe his enemies and reward his allies. Continue Reading...

How taxing work affects employment

Note: This is post #104 in a weekly video series on basic economics. An important factor influencing an individual’s decision whether to keep working as they get older is their government’s tax and retirement policies. Continue Reading...

What labor force participation is (and why it matters)

Note: This is post #103 in a weekly video series on basic economics. Labor force participation is an important concept connected to employment. The labor force participation rate is defined as the section of working population in the age group of 16-64 in the economy currently employed or seeking employment.  Continue Reading...

What you should know about frictional unemployment

Note: This is post #100 in a weekly video series on basic economics. Unemployment is generally harmful to both the economy and to the individual. But there is one type of unemployment that is (mostly) benign, and can even be beneficial: frictional unemployment. Continue Reading...

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