ADVENTURES IN ECONOMICSADITH VENUGOPAL* Abstract The invisible hand- 1776 Adam smith suest leave sel!-inte"ested t"ade"st# $#m%ete &ith #ne an#the"' The (a"ad#) #! Th"i!t * Savins and s%endin habits that in!luen$e the e$#n#m+' The (hili%s Cu"ve- ,alan$e #! in!lati#n "ate and Unem%l#+ment "ate' -#hn Ma+na"d .e+nes * The#"+ t# #ve"$#me "eat de%"essi#n' -#hn Nash The#"+- E/uilib"ium the#"+'0M,A student1 SN2CE1 .#len$he"+.e+ "ds3 E/uilib"ium1 savins 4 investment1 &aes 4 em%l#+ment1 ma"5et st"u$tu"e' INTRODUCTIONAdventures in economicsE$#n#mi$s is a d+nami$ s$ien$e - $hanin t# "e!le$t the shi!tin t"endsin e$#n#mi$ a!!ai"s1 in the envi"#nment1 in the "ld e$#n#m+1 and in s#$iet+ atla"e' A$$#"din t# Adam smith &h# is 5n#&n as the !athe" #! e$#n#mi$s1 het#ld that e$#n#m+ is $#n$e"ned &ith 6an en/ui"+ int# the natu"e and $auses #!&ealth #! nati#ns' The ea"l+ e$#n#mists $alled e$#n#mi$s1 the s$ien$e #!&ealth'Thestud+#!e$#n#mi$shas%assedth"#uhseve"alde$adesme"in&ith seve"al the#"ies that made the &ealth and &el!a"e #! the "ld1 is $"a$5in&ithne&inventi#ns' 7ehe"einte"estedt#!amilia"isethema8#" adventu"esthe#"ies"elatedt#the&ealth#! #u" nati#ns$#nt"ibutedb+them1 &hi$hisdi"e$tl+ "elated t# the &ealth #! ea$h #! %e#%le in the nati#n ' In this lite"atu"e"evie&&e ma5e an attem%t t# !amilia"ise the the#"+ #! invisible hand1.e+nesianthe#"+1the%a"ad#)#!th"i!tthe#"+18#hnnashse/uilib"iumthe#"+andthe(hili%s $u"ve' Adamsmithinhis "56the&ealth#! nati#ns9he!#"mulated the 5e+ the#"ies #! ma"5et d"iven e$#n#mi$s' Then &e # th"#uhthethe#"+#!8'M.e+nesian' :e$"iti$isedsa+sl#&6su%%l+$"eateits#&ndemand9'The (hili%s $u"ve sh#&s the "elati#nshi% bet&een em%l#+ment "ateand in!lati#n and it;s "e!le$ti#n #n "#&th #! the Nati#ns' In 1