#02

Principle #10

Society faces a short-run trade-off between inflation and unemployment. In the long-run, increasing money usually raises prices. Things are more complex in the short-run. The complexity tends to be a result of economic policies pushing inflation and unemployment in opposite directions.

Richard W Swinney

Principle #09

Prices rise when the government prints too much money. Inflation is an increase in the overall level of prices in the economy. Currently, the 12-month inflation rate in the United States is ending June 2026 is 3.5%, down from 4.2%.

Richard W Swinney

Principle #08

A country's standard of living depends on its ability to produce goods and services. Productivity is the amount of goods and services produced from each unit of labor input. Higher productivity generally leads to a higher standard of living.

Richard W Swinney

Ten Principles of Economics

Principle #01: People face trade-offs. Principle #02: The cost of something is what you give up to get it. Principle #03: Rational people think at the margin. Principle #04: People respond to incentives. Principle #05: Trade can make everyone better off. Principle #06: Markets are usually a good way to organize economic activity. Principle #07: Governments can sometimes improve market outcomes. Principle #08: A country's standard of living depends on its ability to produce go

Richard W Swinney

1 min read