The Little Book of Economics: How the Economy Works in the Real World (Little Books. Big Profits)

In 2026, China’s population should start to decline. It may be the first country to grow old before it grows rich.

productivity far less than his first. This is the law of diminishing returns.

according to the Economist, is that a depression is a contraction in economic activity of at least 10 percent or lasting at least three years.

How do you know a recession has occurred? Easy: a press release goes out.

For a country to be rich—that is, for its average citizen to enjoy a high standard of living—it must depend on productivity, which is the ability to make more, better stuff with the labor it already has. Productivity itself depends on two factors: capital and ideas.

Harry Truman said “a recession [is] when your neighbor loses his job; it’s a depression when you lose yours.”

Expenditure-based GDP. Total of all the money spent on stuff. 2. Income-based GDP. Total of all the money earned producing stuff.

In a nutshell, growth rests on two building blocks: population and productivity. 1. Population determines how many workers a country will have. 2. Productivity, or output per worker, determines how much each worker earns.

four engines are consumers, businesses, government, and exports.