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Economic Perspectives, Vol. 32, 3rd, 2008
How the U.S. Economy Is Like a (Very) Big Business
This article offers a perspective on analyzing the growth of the U.S. economy by treating the economy as a very large firm. A well-functioning economy maximizes households’ well-being rather than firms’ profits, so policymakers’ objectives and motivations are not as clear-cut as those of company chief executives. Still, as in any business, identifying areas of weakness and relative strength in the economy is inherently valuable in guiding decision-making.
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