Fallacy of Composition: Macroeconomic Wonders
Probably by now, it is surefire clear ( 明若 观 火 , míngruòguānhuǒ in pinyin ) to the rest of us that a price for each is alive and active at the moment of individual exchange. On the contrary, the price and the price level are dead and fixed at the time of accounting for the collective exchanges. Paraphrase 1 . By saying “moment,” we mean “the shortest run” (T -1 ) where no relevant changes take place. To be true, there in Here on Earth is no such thing as a moment (T 0 ) . Paraphrase 2 . A price is applicable to each exchange and at the "moment" of exchange. In theory of the real marketplace, there from a certain short "moment" of time to the very "long run" can possibly be as many prices as exchanges are. Again, the time never flies across (L -1 ) but it flows over (T -1 ). Paraphrase 3 . There per accounting period are "so many exchanges" but only...