ABSTRACT

This chapter will direct us to one o f the most serious and persistent prob­ lems faced by the economically developed market systems-economic insta­ bility. In the course o f seeing how the nation ’s income and output levels are measured, we will also identify the economic groups whose decisions and actions affect these levels. Subsequent chapters will examine the theory o f how these decisions affect inflation and recession and the poli­ cies to achieve economic stability.