Financial Journal
Two bags on the same scale 1
400 g for $2.40
$0.60 for 100 g. 2
750 g for $3.75
$0.50 for 100 g. 3
Check the total
The smaller bag still costs less at checkout. money-life
Two shelf prices can point in opposite directions once you account for the amount inside. Compare the same quantity first, then decide how much you can use.
7 November 2026 Financial Journal
FIGURE 02 / THE TOTAL AND THE EXPERIENCE GDP ECONOMIC OUTPUT Population Prices and purchasing power Distribution and household income DIFFERENT MEASURES / DIFFERENT QUESTIONS economy-explained
National output, production per person and household purchasing power describe different parts of economic life.
7 November 2026 Financial Journal
FIGURE 03 / THREE NUMBERS, THREE JOBS REVENUE 10,000 Work recognised as sales NET PROFIT 2,000 Revenue less expenses OPERATING CASH −1,500 Receipts less operating payments A profitable month can still use cash. FICTIONAL BUSINESS / CURRENCY UNITS / SIMPLIFIED ASSUMPTIONS business-by-numbers
A fictional service firm earns $2,000 in profit as its cash falls by $500. Follow the invoices, costs, equipment purchase and borrowing.
7 November 2026 Financial Journal
Financial Journal
Convert the raise to comparable dollars 1
Nominal wage
$25 rises to $26. 2
Price ratio
105 divided by 100 equals 1.05. 3
Real wage
$26 divided by 1.05 is about $24.76. money-life
Adjust a pay figure for price changes over the same period to estimate how its purchasing power moved.
7 November 2026 Financial Journal
Financial Journal
A change in the denominator 1
Starting labor force
60 employed plus 5 unemployed. 2
One search ends
The labor force falls to 64. 3
Unemployment falls
The rate reaches 6.25% with 60 still employed. economy-explained
A small example shows why the share of people looking for work matters alongside the number of people working.
7 November 2026 Financial Journal
Financial Journal
Three years of interest at 4% 1
Start
$800 of principal. 2
Year two
$832 earns $33.28. 3
Year three
The balance reaches about $899.89. money-life
Follow the same $800 for three years to see how the balance grows when each year’s interest stays in the account.
7 November 2026 Financial Journal
Financial Journal
Same shop, two measures 1
First month
$4,000 gross profit on $10,000 of sales. 2
Second month
$5,000 gross profit on $15,000 of sales. 3
Margin falls
40% becomes about 33.3%. business-by-numbers
A shop can keep more dollars from sales while keeping less from every dollar sold. An income statement shows how both can happen.
7 November 2026 Financial Journal
Financial Journal
Plan backward from the bill 1
Bill and amount saved
$600 due. $120 already set aside. 2
Gap and dates
$480 needed across four deposits. 3
Next payment cycle
A full year at $600 calls for $50 a month. money-life
An annual bill has two useful numbers. One is the amount to set aside regularly, and the other is the cash you will need on its due date.
7 November 2026 Financial Journal
Financial Journal
December 2024 U.S. trade figures 1
Exports
$266.5 billion. 2
Imports
$364.9 billion. 3
Balance
Exports minus imports gives −$98.4 billion. economy-explained
A fixed U.S. release shows how exports and imports can move in opposite directions and how services can offset part of a goods deficit.
7 November 2026 Financial Journal