[Verse 1]
Three pathways measure national wealth and size
Expenditure tracks where every dollar flies
Income counts the wages, profits that we earn
Production sums the value-added turn
GDP's the heartbeat of our nation's chest
Three angles, same answer, put us to the test
[Chorus]
Aggregate demand shifts left and right
Aggregate supply, short-run takes flight
Long-run's vertical, potential's the key
Business cycles dancing, one-two-three
Expansion, peak, contraction, trough
Macroeconomics, we've got enough
[Verse 2]
Leading indicators whisper future's tale
Stock prices, permits never seem to fail
Coincident moves with the current flow
Employment, income, production's glow
Lagging indicators trail behind the curve
Unemployment rates and interest serve
[Chorus]
Aggregate demand shifts left and right
Aggregate supply, short-run takes flight
Long-run's vertical, potential's the key
Business cycles dancing, one-two-three
Expansion, peak, contraction, trough
Macroeconomics, we've got enough
[Verse 3]
Fiscal policy pulls the spending lever
Government expenditure, tax endeavor
Multiplier magnifies the initial shock
But Ricardian equivalence stops the clock
When people save for future tax demands
Deficits and debt slip through our hands
[Bridge]
Central banks command the monetary stage
Open market operations turn the page
Reserve requirements, discount rates align
Quantitative easing floods the system's spine
Money supply meets money demand's desire
Transmission mechanisms spark the fire
[Verse 4]
Demand-pull inflation heats the market up
Cost-push pressures fill a bitter cup
Phillips curve trades unemployment's pain
For inflation's temporary gain
But expectations shift the whole equation
Deflation threatens economic salvation
[Outro]
Natural unemployment's the baseline floor
Frictional searching, structural core
Cyclical swings with recession's bite
GDP, cycles, policy's might
From fiscal tools to monetary command
Macro principles help us understand