Accounting Songs for CPA Exam: Economic Cycles

MP3 Download (Right-click and Save): Economic Cycles

CHORUS:
It’s the E-C-O to the N – O – M – I- C -S
Better do good on your test
Supply & Demand, that’s the plan
Economic cycles all across the land

VERSE 1:
Yo, let’s talk about supply curve
When an item price increases, supply does for sure
Positive Supply Curve Shift, shift right
The market’s flooded with companies sellin’ all night

Shift left for a negative supply curve shift
Cost of producing an item increases
If gold goes up, less gold watches are made, see
Lower equilibrium GDP

On the demand curve, when the price goes up
Demand goes down, they don’t want that stuff
If demand changes due to somethin’ other than price
A demand shift occurs, ain’t that nice? Yea

VERSE 2:
Equilibrium price
Quantity supplied = quantity demanded, yea that’s right
Optimal production
Marginal revenue = marginal cost, am I gettin’ through?

When we’re talkin’ ‘bout the GDP
Remember, that’s goods & services produced domestically
Even a foreign company with a U.S. factory
But a U.S. company abroad, that don’t get added on

The consumer price index
Gives prices relative to an earlier time, like when you chewed on Chicklets
The GDP deflator
Converts GDP to Real GDP, gettin’ that green, yea

VERSE 3:
The discount rate is the rate the bank gets
When they borrow money from the Fed
The prime rate, well that’s the rate that you’re gonna get
If you’re a customer and they love you the best

If the real interest rate is what you wanted
Remember that’s inflation-adjusted
The risk-free rate
Takes into account certainty of payback on a certain date

Currency, coins, and deposits, M1
Highly liquid assets be M2, we havin’ fun
A tariff is the imported goods tax
The quota is the limit that they got you at, yea