- 6.1: The governments budget surplus in Macroland has risen consistentlyo...
- 6.2: You are an economic adviser to a candidate for national office.She ...
- 6.3: In which of the following cases does the size of the governmentsdeb...
- 6.4: Unlike households, governments are often able to sustain largedebts...
- 6.5: In the economy of Eastlandia, the money market is initially inequil...
- 6.6: Continuing from equilibrium E1 in the previous problem, nowsuppose ...
- 6.7: An economy is in long - run macroeconomic equilibrium withan unempl...
- 6.8: In the following examples, would the classical model of theprice le...
- 6.9: Answer the following questions about the (real) inflation tax,assum...
- 6.10: Concerned about the crowding - out effects of government borrowingo...
- 6.11: The accompanying table provides data from the UnitedStates on the a...
- 6.12: In the modern world, central banks are free to increase or reduceth...
- 6.13: Monetarists believed for a period of time that the velocity ofmoney...
- 6.14: Module 35 explains that Kenneth Rogoff proclaimed RichardNixon the ...
- 6.15: The economy of Albernia is facing a recessionary gap, andthe leader...
- 6.16: Which of the following policy recommendations, if any, areconsisten...
- 6.17: Using a set of graphs as in Figure 35.2, show how a monetaristcan a...
Solutions for Chapter 6: Inflation, Unemployment, and Stabilization Process
Full solutions for Krugman's Macroeconomics for AP* | 1st Edition
a curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level
Arrow’s impossibility theorem
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
a shortfall of tax revenue from government spending
financial institutions through which savers can directly provide funds to borrowers
the study of a company’s accounting statements and future prospects to determine its value
the study of how people behave in strategic situations
a curve that shows consumption bundles that give the consumer the same level of satisfaction
the process by which workers find appropriate jobs given their tastes and skills
the change in total revenue from an additional unit sold
the study of how households and firms make decisions and how they interact in markets
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
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
the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
two goods with straight-line indifference curves
a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
quantity theory of money
a theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate
a situation in which quantity supplied is greater than quantity demanded
the manner in which the burden of a tax is shared among participants in a market
society’s understanding of the best ways to produce goods and services
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society