- 12.1: Define:a. inflationb. demand-side inflationc. supply-side inflation...
- 12.2: The CPI is 167 in year 1and 189 in year 2.Whatis the inflation rate...
- 12.3: The CPI is 180 in year 1and 174 in year 2.Whatis the deflation rate...
- 12.4: An increase in themoney supply is morelikely to cause supplysideinf...
- 12.5: Explain how a change inaggregate demand andaggregate supply cancaus...
- 12.6: A theory that predictsthat changes in themoney supply bringabout st...
- 12.7: The simple quantity theoryof money assumesthat velocity and thequan...
- 12.8: If real GDP is at the low point of the businesscycle, it is in the ...
- 12.9: An increase in real GDP from one period to thenext is referred to a...
- 12.10: Real GDP divided by population is called______.
- 12.11: How do incentives affect economic growth?
- 12.12: Explain how the Fed can cause a business cycle.
- 12.13: What is human capital and how does it relate toeconomic growth?
Solutions for Chapter 12: Inflation and Deflation
Full solutions for Economics New Ways of Thinking | 1st Edition
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 situation in which exports equal imports
a shortfall of tax revenue from government spending
the equipment and structures used to produce goods and services
the reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks
total revenue minus total cost, including both explicit and implicit costs
input costs that require an outlay of money by the firm
money without intrinsic value that is used as money because of government decree
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
the quantity of money available in the economy
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
a market structure in which only a few sellers offer similar or identical products
the amount of a good that buyers are willing and able to purchase
the organized withdrawal of labor from a firm by a union
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
two goods for which an increase in the price of one leads to an increase in the demand for the other
a situation in which quantity supplied is greater than quantity demanded
a measure of happiness or satisfaction
value of the marginal product
the marginal product of an input times the price of the output
government programs that supplement the incomes of the needy