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Solutions for Chapter 7: Economic Growth and Productivity

Krugman's Macroeconomics for AP* | 1st Edition | ISBN: 9781429257305 | Authors: Margaret Ray, David A. Anderson

Full solutions for Krugman's Macroeconomics for AP* | 1st Edition

ISBN: 9781429257305

Krugman's Macroeconomics for AP* | 1st Edition | ISBN: 9781429257305 | Authors: Margaret Ray, David A. Anderson

Solutions for Chapter 7: Economic Growth and Productivity

Since 13 problems in chapter 7: Economic Growth and Productivity have been answered, more than 2195 students have viewed full step-by-step solutions from this chapter. Krugman's Macroeconomics for AP* was written by and is associated to the ISBN: 9781429257305. Chapter 7: Economic Growth and Productivity includes 13 full step-by-step solutions. This textbook survival guide was created for the textbook: Krugman's Macroeconomics for AP*, edition: 1. This expansive textbook survival guide covers the following chapters and their solutions.

Key Business Terms and definitions covered in this textbook
  • aggregate-demand curve

    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

  • budget constraint

    the limit on the consumption bundles that a consumer can afford

  • compounding

    the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future

  • economies of scale

    the property whereby long-run average total cost falls as the quantity of output increases

  • externality

    the uncompensated impact of one person’s actions on the wellbeing of a bystander

  • labor force

    the total number of workers, including both the employed and the unemployed

  • macroeconomics

    the study of economy-wide phenomena, including inflation, unemployment, and economic growth

  • marginal change

    a small incremental adjustment to a plan of action

  • market failure

    a situation in which a market left on its own fails to allocate resources efficiently

  • moral hazard

    the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior

  • natural rate of unemployment

    the normal rate of unemployment around which the unemployment rate fluctuates

  • oligopoly

    a market structure in which only a few sellers offer similar or identical products

  • poverty line

    an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty

  • production possibilities frontier

    a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology

  • progressive tax

    a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers

  • purchasing-power parity

    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

  • signaling

    an action taken by an informed party to reveal private information to an uninformed party

  • substitution effect

    the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution

  • tax incidence

    the manner in which the burden of a tax is shared among participants in a market

  • utilitarianism

    the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society

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