- 3.1: At right is a simplified circular-flow diagram for theeconomy of Mi...
- 3.2: A more complex circular-flow diagramfor the economy ofMacronia is s...
- 3.3: The components of GDP in the accompanying table were producedby the...
- 3.4: The small economy of Pizzania produces three goods (bread,cheese, a...
- 3.5: The economy of Pizzanistan resembles Pizzania (from 4) except that ...
- 3.6: The accompanying table shows data on nominal GDP (in billionsof dol...
- 3.7: Eastland College is concerned about the rising price of textbooksth...
- 3.8: The consumer price index, or CPI, measures the cost of livingfor a ...
- 3.9: Each month the Bureau of Labor Statistics releases the ConsumerPric...
- 3.10: The accompanying table provides the annual real GDP (in billionsof ...
- 3.11: The cost of a college education in the United States is rising ata ...
- 3.12: Each month, usually on the first Friday of the month, the Bureauof ...
- 3.13: In general, how do changes in the unemployment rate varywith change...
- 3.14: There is only one labor market in Profunctia. All workers havethe s...
- 3.15: A countrys labor force is the sum of the number of employedand unem...
- 3.16: In which of the following cases is it likely for efficiency wagesto...
- 3.17: How will the following changes affect the natural rate ofunemployme...
- 3.18: With its tradition of a job for life for most citizens, Japan onceh...
- 3.19: The accompanying diagram shows mortgage interest ratesand inflation...
- 3.20: The accompanying table provides the inflation rate in the year2000 ...
Solutions for Chapter 3: Measurement of Economic Performance
Full solutions for Krugman's Macroeconomics for AP* | 1st Edition
an excess of government spending over government receipts
the equipment and structures used to produce goods and services
two goods for which an increase in the price of one leads to a decrease in the demand for the other
spending by households on goods and services, with the exception of purchases of new housing
the study of how society manages its scarce resources
economies of scale
the property whereby long-run average total cost falls as the quantity of output increases
the price that balances quantity supplied and quantity demanded
a small incremental adjustment to a plan of action
the change in total revenue from an additional unit sold
a situation in which a market left on its own fails to allocate resources efficiently
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
natural level of output
the production of goods and services that an economy achieves in the long run when unemployment is at its normal rate
net capital outflow
the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners
a good for which, other things being equal, an increase in
the percentage of the population whose family income falls below an absolute level called the poverty line
a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers
a tax for which highincome and low-income taxpayers pay the same fraction of income
the amount of a good that buyers are willing and able to purchase
the amount of a good that sellers are willing and able to sell
the organized withdrawal of labor from a firm by a union