- Chapter 16.1: What produced stagflation?
- Chapter 16.2: Why is even a small change in the GDP gap significant?
- Chapter 16.3: How can a healthy economy help society deal better with problems su...
- Chapter 16.4: What is the basic principle of monetarism?
Solutions for Chapter Chapter 16: Achieving Economic Stability
Full solutions for Economics: Principles and Practices, Reading Essentials and Study Guide, Workbook | 1st Edition
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
the ability to produce a good using fewer inputs than another producer
total revenue divided by the quantity sold
the failure of majority rule to produce transitive preferences for society
the fall in total surplus that results from a market distortion, such as a tax
a graph of the relationship between the price of a good and the quantity demanded
the interest rate on the loans that the Fed makes to banks
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
federal funds rate
the interest rate at which banks make overnight loans to one another
the revenue the government raises by creating money
internalizing the externality
altering incentives so that people take account of the external effects of their actions
market for loanable funds
the market in which those who want to save supply funds and those who want to borrow to invest demand funds
the production of goods and services valued at current prices
the purchase and sale of U.S. government bonds by the Fed
a legal maximum on the price at which a good can be sold
the business practice of selling the same good at different prices to different customers
a person for whom another person, called the agent, is performing some act
a graph of the relationship between the price of a good and the quantity supplied
a government program that partially protects workers’ incomes when they become unemployed
value of the marginal product
the marginal product of an input times the price of the output