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Solutions for Chapter Module 12 : The Meaning and Calculation of Unemployment

Full solutions for Krugman's Economics for AP* | 2nd Edition

ISBN: 9781429218276

Solutions for Chapter Module 12 : The Meaning and Calculation of Unemployment

This expansive textbook survival guide covers the following chapters and their solutions. Chapter Module 12 : The Meaning and Calculation of Unemployment includes 5 full step-by-step solutions. This textbook survival guide was created for the textbook: Krugman's Economics for AP*, edition: 2. Since 5 problems in chapter Module 12 : The Meaning and Calculation of Unemployment have been answered, more than 8889 students have viewed full step-by-step solutions from this chapter. Krugman's Economics for AP* was written by and is associated to the ISBN: 9781429218276.

Key Business Terms and definitions covered in this textbook
  • average fixed cost

    fixed cost divided by the quantity of output

  • classical dichotomy

    the theoretical separation of nominal and real variables

  • Coase theorem

    the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own

  • inferior good

    a good for which, other things being equal, an increase in income leads to a decrease in demand

  • internalizing the externality

    altering incentives so that people take account of the external effects of their actions

  • law of supply and demand

    the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance

  • life cycle

    the regular pattern of income variation over a person’s life

  • marginal product of labor

    the increase in the amount of output from an additional unit of labor

  • natural monopoly

    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

  • natural-rate hypothesis

    the claim that unemployment eventually returns to its normal, or natural, rate, regardless of the rate of inflation

  • negative income tax

    a tax system that collects revenue from high-income households and gives subsidies to lowincome households

  • perfect complements

    two goods with right-angle indifference curves

  • private saving

    the income that households have left after paying for taxes and consumption

  • productivity

    the quantity of goods and services produced from each unit of labor input

  • real GDP

    the production of goods and services valued at constant prices

  • real interest rate

    the interest rate corrected for the effects of inflation

  • recession

    a period of declining real incomes and rising unemployment

  • reserves

    deposits that banks have received but have not loaned out

  • strike

    the organized withdrawal of labor from a firm by a union

  • unemployment rate

    the percentage of the labor force that is unemployed

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